Ilmilanista.it believes the 23-year-old could be persuaded by fellow international centre-back Thiago Silva to join the Rossoneri, having played alongside Silva in the last few games for the Selecao.
However, Chelsea and Manchester City are monitoring the situation after a statement from the Portuguese club.
A source at Benfica has said to British newspaper The Sun: "Going out of the Champions League affected our financial plans. We want to re-evaluate the situation."
Manchester City attempted to persuade Benfica to part with Luiz by offering huge sums of money during the summer and the player was said to be disgruntled about not being allowed to further his career.
Benfica are rumoured to be willing to let both Luiz and Portuguese full-back Fabio Coentrao leave after failing to progress to the knockout stages of the UEFA Champions League.
The excellent relations between ex-Rossonero Rui Costa and his former club is also said to be swinging in Milan's favour with Inter also apparently interested.
Great news if it's true...
Source: Goal.com
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