Fernando Torres will join Milan permanently on January 5 ahead of his expected return to Atletico Madrid.
Liverpool boss Brendan Rodgers has insisted Mario Balotelli will not be going out on loan in the January transfer window.
Rayo Vallecano have re-signed striker Raul Tamudo on a deal running to the end of the season, the Primera Division club have announced.
The 35-year-old left Vallecas for Mexican outfit Pachuca in June but was released after failing to score in nine league appearances.
Tamudo scored nine goals in 32 league appearances for Rayo in the 2011/12 season and is best known for his 12-year spell with Espanyol, for whom he netted 129 goals.