The mayor of Milan, Giuseppe Sala, has met with representatives of AC Milan and Inter Milan to discuss the possibility of modernising the San Siro -- and he says the signs are positive.
The two Serie A clubs are tenants in the city-owned stadium, which underwent significant renovation work prior to staging the 2016 Champions League final.
However, more work is deemed necessary to bring the 80,000-seater stadium up to modern standards and it has been mooted that both clubs could contribute financially in these works.
Sala says this is an increasingly realistic prospect after holding talks with Milan and Inter representatives.
"We share the belief that a modern, renovated stadium provides an element of value to the city of Milan and for the clubs," Sala is quoted as saying by ANSA. "Both sides have expressed their willingness to invest.
"A working group will be opened to assess all the possible options we have available with the aim of identifying, in just a few months, the best solution for the demands of the city's two clubs and of the fans."
Milan won a tender to build a new stadium on the former trade fair grounds close to their headquarters in 2015, but they chose not to proceed with the planned new-build and were consequently forced to pay €5 million in compensation for reneging on their agreement.
They now appear to favour staying at the San Siro together with Inter, who had been considering purchasing the venue in the event of Milan building a new stadium.
Neither club currently have plans to leave their shared home.