Ukraine striker Andriy Shevchenko is leaving AC Milan who will start negotiations with English champions Chelsea over his transfer, according to a statement on AC Milan's website on Friday.
"I'm leaving for family reasons," Shevchenko, a former European footballer of the year, said. "I thank the club for all they have given me. There's no relationship problem and there's no economic problem."
Adriano Galliani, vice president of AC Milan, said in the same statement that the club would start negotiations with Chelsea, adding: "It will not be easy".
"I tried to persuade him to stay up until the last minute. It is certainly the most painful separation during my time at Milan," Galliani said.
Shevchenko has been at Milan for seven years following his move from Dynamo Kiev. During his time with the Italian club he won the Champions league in 2003 and the Italian title in 2004.
He is the highest scorer in the history of the European Cup.
Chelsea, who have just won their second successive English title, bought Germany playmaker Michael Ballack 11 days ago. They are financed by Russian billionaire Roman Abramovich.