Italian giants AC Milan are reportedly interested in signing Jermaine Pennant in the summer when he will be a free agent, but Liverpool apparently want to cash in on the winger this month with Real Madrid said to have made a £3m bid.

The 25-year-old former Arsenal and Birmingham City right winger has failed to establish himself at Anfield and Reds boss Rafa Benitez is keen to sell the former England U-21 international this month rather than see him going on the free at the end of his contract in the summer.

Pennant has recently claimed that he cannot imagine playing for a Premiership side other than Liverpool, and as such could be interested in moving to fellow European powerhouse, but it now seems that the Reds want Spanish giants to increase their offer. However, Real boss Juande Ramos is reported to be firm on the bid leaving the Merseysiders to ponder on the situation.

Nevertheless, reports claim Milan are looking to tie up Pennant to a pre-contract deal as he can now speak to the club and according to the Express, officials from the San Siro have already approached Pennant's representatives and presented a pre-contract deal.