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Most of the English media are now reporting that talks between AC Milan and Michael Essien are getting serious, with the Italian side willing to take the player either on loan or on a permanent basis. Milan are looking to strengthen a mostly terrible midfield, and Essien would provide a relatively low cost short term solution that's ready to play right away.
This morning gave us news that Milan would probably require Essien to take some sort of discount on his wages in order fit him into their budget, while Chelsea have been reluctant of late to pay any wages for players being sent out on loan. Essien took a slight paycut in order to facilitate a loan to Real Madrid, so there's always a chance that he'd be willing to do the same in order to join AC Milan.
There are also rumor making the rounds that Milan would prefer to sign Essien on a permanent basis, though doing so would require Chelsea to release the player for free. Assuming Milan wouldn't be asking the Blues to pay any of the Ghana international's wage, that's probably not an unreasonable expectation. Should Essien's move be a permanent one, it would be a sad day for Chelsea fans everywhere.