The Rossoneri want to take the France midfielder on loan with a view to a permanent move before the Serie A transfer window comes to a close this Friday.
However, with Chelsea desperate to recoup the £40million they paid Monaco last season, Milan’s own valuation for a combined loan fee and option to buy is reportedly £31.5m.
With Bakayoko cut adrift from a new era under Maurizio Sarri, the Serie A side are happy to play the waiting game knowing that Chelsea do not have much leverage to play with.
The 23-year-old played 43 times for Chelsea last year but is clearly behind the likes of Jorginho, N’Golo Kante, Cesc Fabregas and Real Madrid loanee Mateo Kovacic in the midfield pecking order.
The 24-year-old spent the second half of last season on loan at Borussia Dortmund, having found his opportunities at Stamford Bridge limited following the arrival of Olivier Giroud to compete with Alvaro Morata for a place in the starting line-up.
Batshuayi scored nine goals in 14 appearances for Dortmund but his spell was cut short in April when he suffered ankle ligament damage.
Valencia said: “Valencia CF have reached this Friday an agreement with Chelsea FC for the transfer of Michy Batshuayi until the end of this season.”
The Premier League’s summer transfer window may have now closed but the market remains open around the continent.
That means that while English clubs can no longer sign players they can still sell them. Italy’s transfer deadline is next week, on August 17, while Spanish and French clubs can still trade until August 31.
Here, Press Association Sport looks at some players who could still leave the Premier League this month.
TOBY ALDERWEIRELD (TOTTENHAM)
Spurs have avoided losing their highly-rated centre-back to a Premier League rival – Manchester United were linked – but they still face a dilemma over the Belgian. Alderweireld is reported to have a £25million release clause in his contract which becomes effective next summer and, with talks over a new deal having stalled, his value will start to decrease if he is not offloaded soon. The player is currently out of favour and a good offer may tempt Spurs to cash in, but they cannot replace him until January.
ANTHONY MARTIAL (MANCHESTER UNITED)
The France international seems unsettled at Old Trafford and reports have linked him with a move away all summer. These rumours have cooled lately but his relationship with manager Jose Mourinho appears to have become strained and he faces tough competition for a place in the United side, so a move may not be out of the question.
EDEN HAZARD (CHELSEA)
The Belgium playmaker said after the World Cup that he felt it might be time to move on and Real Madrid have regularly been mentioned as potential suitors. Unlike Thibaut Courtois, however, Hazard has not agitated for a move and has returned to training as normal. Chelsea are also reluctant to sell. It seems it would have to take a firm and significant offer for any business to be initiated.
PAUL POGBA (MANCHESTER UNITED)
Rumours linking Pogba with Barcelona continue to surface even though United have no intention of selling their £89million record signing, who is contracted for another three years. It remains to be seen if Barca’s interest is genuine or if the player wants to try to push for a move. Despite his undoubted talent, Pogba has not been a consistent performer since returning to Old Trafford two years ago and he also seems to have had his difficulties with Mourinho.
ELIAQUIM MANGALA (MANCHESTER CITY)
City have seen little return from the £42million they paid for Mangala in 2014 and, with the defender now in the final year of his contract, time to extract any cash back for him is running out. City would be willing to sell, and a reasonably successful loan to Valencia in 2016-17 proves the defender can still do a job somewhere, but the matter is complicated by injury. Mangala’s loan to Everton last season was cut short by knee ligament damage and there could be doubt over his fitness.