Kaka, currently in Brazil with the national team ahead of a World Cup qualifier against Uruguay, will sign up for five years and a salary worth nine million euros a year, it added.
AC Milan owner Silvio Berlusconi had hinted at 27-year-old Kaka's departure moments before Cadena Ser had claimed he was indeed moving.
"I do not know if we can keep Kaka at Milan because they (Real) have offered him so much money," Berlusconi was quoted as saying by Italian press agency Ansa.
It comes on the same day as Kaka - who was courted by English Premiership side Manchester City back in January - was telling La Gazzetto dello Sport he had no intention of quitting Milan.
"I'll tell you this for the last time, the very last. I don't want to leave Milan. To the millions of Milan fans, I tell you that I've made my choice. I've said I want to stay. Leave me in peace, please," Kaka told La Gazzetta dello Sport newspaper.
"I want to continue to win with Milan. And from today, all discussion is over."
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