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Per footballitalia:

Milan have agreed a £3.5m fee with Manchester City for Nigel De Jong, confirming he'll arrive for a medical tomorrow.

Talks for the 27-year-old have been on-going for several days and had ground to a halt this morning, but tonight Milan Channel announced "De Jong is on his way to Milan. The medical will be performed tomorrow."

It is suggested that De Jong is already at the airport with Milan director Ariedo Braida.

News has been gathering pace today regarding a possible move, but short of any official announcement it does appear that de Jong is likely done at City.

There have been reports previously regarding the inability to agree terms on a new contract, and although City are fairly stocked in midfield his departure will leave a sizeable hole in the squad. The fee of £3.5million too (despite his contract expiring in the summer of 2013) is one initially feels on the low side.

I'll post more once official confirmation comes through.

UPDATE:

Reports are circulating of de Jong having arrived in Italy.