City manager Roberto Mancini has consistently said his fellow Italian is not for sale throughout this month's transfer window but that has not quashed rumours linking him with the San Siro giants.
Milan have made their liking for the 22-year-old clear but have previously baulked at City's reported £28million valuation.
Now fresh reports have emerged claiming negotiations between the clubs have begun but City's public message on the matter has not changed.
First-team coach David Platt said: "I saw that speculation (on Sunday) but I've not heard anything.
"As far as we are concerned I think he is still a Manchester City player. I don't think anything is going to happen."