Brazilian midfielder now set for negotiations over personal terms with Sao Paulo.
Real Madrid midfielder Kaka is reportedly set for a €15m move to Sao Paulo, thus ending his successful spell in Europe according to Todox Deportes.
The former AC Milan star has previously been linked with a return to San Siro, however a deal could not be agreed between the two parties in January as the Rossoneri continue to trust in youth and look to reduce their wage bill.
The 31-year-old enjoyed six trophy-laden years in Milan, before making the move to Spain in 2009. However, troubles with both form and fitness ensured he was never able to recapture that high standard of football, and it is understood the Spanish giants are pushing to sell him.
The Brazilian international could have expected a new lease of life at Madrid, given the fact that he was set to be reunited with Carlo Ancelotti following their successful stint together in Italy.
However, it would appear Madrid are looking to offload him as they look to make room for reinforcements in the squad, with interest still high in Tottenham ace Gareth Bale.
It is believed that Kaka is still one of the highest paid players at the club, but given that Los Blancos have agreed the transfer fee, it will now be up to the player to negotiate personal terms with the Brazilian outfit.
He will have to accept a drastic reduction in wages though, although it was reported in January that Milan were willing to offer more than the suggested €3m that Sao Paulo are set to put on the table.
Milan vice-president Adriano Galliani had suggested a figure around $5.5m per season six months ago, but the Rossoneri have now switched their attention to CSKA Moscow playmaker Keisuke Honda.
Nevertheless, news of the deal could reignite interest from the Italian giants, although at this stage it would appear a return to his homeland is more likely for Kaka.