The Brazilian is reportedly being tracked by the Rossoneri, and agent Luis Fuentes says the Brazilian, whose stock continues to rise at the World Cup, is keen on a move.
The San Siro club reportedly made an offer for the 29-year-old last July, but the forward was left aggrieved as his club refused him permission to speak with the Italian giants.
"Either Fabiano joins Milan straight away, or he will stay at Sevilla for another year," Fuentes told Corriere dello Sport.
Fabiano has just one year left on his current deal at Sevilla, and has refused to extend his contract at the Ramon Sanchez Pizjuan, biding his time for Milan to make a second move.
Milan vice-president Adriano Galliani is a big admirer of the talented forward, and he has been quoted in the Italian press as saying he hopes to sign the Brazilian by the start of the season.
However, Rojiblancos general manager Ramon Rodreiguez Verdejo Mochi Monchi told Tuttomercatoweb: "We deny that the club have had any contact with the Italian club and hope the former Sao Paulo and Porto striker will stay in Spain next season.
"His agent is pushing Luis Fabiano to Milan? I don't know. I can say that until now Milan have not spoken with us.
"We will meet the player after the World Cup and we will talk then. Will he remain at Sevilla? I don't know, we'll see after the World Cup," he said.