According to the Daily Express, Beckham, 33, is desperate to stay in the city after Posh told him it would be an ideal base for her fashion business.
Sources close to Becks said he is willing to have his wages slashed so Milan can afford to raise their seven million pound bid for him - which has been rejected by L A Galaxy.
Pals say Becks has 'surprised himself' with his form since joining the Italian giants. He reckons a move could even give him the chance to break goalie Peter Shilton's record as England's most-capped player.
One friend said: "David and Victoria have their hearts set on Milan. They don't need the cash, it's about David making the most of his final years on the pitch. If that means a pay cut, they won't exactly be on the breadline. And if that helps seal the deal, I'm sure David would say yes in a second."
England boss Fabio Capello, 62, has told Becks that staying with Milan would boost his chances of playing in the 2010 World Cup.
At the moment, Beckham is expected to return to the US by March 9 to play for the Galaxy in their new season.