The Frenchman has not worked in football since stepping down as coach of the Gunners at the end of last season after 22 years at the helm.
France Football report that he has been in negotiations with Milan for weeks, and an agreement has nearly been reached to replace Gennaro Gattuso as coach.
In a recent interview with Sky Sports, Wenger stated he expects to be back working in football by early 2019.
"I'll be somewhere early next year but I do not know where," he said.
"I got a good rest. I watched a lot of football. I miss it."
The 69-year-old has been linked with multiple prestigious clubs in both a coaching and directing capacity, including Real Madrid, Bayern Munich and Paris Saint-Germain.
Milan have had a highly inconsistent season so far under former midfielder Gattuso, but they currently sit an impressive fourth on the Serie A ladder.
