The Guardian is reporting that Chelsea is prepared to offer A.C. Milan a world-record €100 million transfer fee for Brazilian midfielder Kaká.

If completed, the audacious deal would smash the previous record transfer fee of €76 million, which Real Madrid paid for Zinedine Zidane in 2001. Milan turned down a €90 million from Madrid for Kaká last summer, but with none of that filthy Champions League lucre coming in next season, Milan might use this deal to balance their books and add a less expensive, albeit less talented central midfielder.

This comes just days after Milan signed Ronaldinho from Barcelona for €21 million, so that much-anticipated Brazilian renaissance at the San Siro might not happen as expected.

Kaká beat out Cristiano Ronaldo for the Ballon d'Or in 2007 after leading Milan to the Champions League title. He would join a very crowded Chelsea midfield, which currently includes Michael Ballack, Frank Lampard, Joe Cole, Michael Essien, Jon Obi Mikel, Florent Malouda, Claude Makélélé and Shawn Wright-Phillips. Lampard, however, is expected to move to Inter Milan and be reunited with Jose Mourinho soon, while Makélélé and Wright-Phillips are believed to be on their way out.

UPDATE (7/21): Chelsea is now denying that they made this offer. Looks like it's up to Cristiano Ronaldo to break the world record for a transfer fee after all.