The San Siro side are in the market for defensive reinforcements due to the expected departure of Thiago Silva to Paris Saint-Germain, and club chief executive Adriano Galliani sees the 20-year-old as a valuable addition to the squad.
The Bundesliga outfit have already turned down two approaches from Milan for the Greece international, but the Rossoneri have not given up on the powerful centre-back and are ready to make another move.
Papadopoulos joined Schalke from Olympiakos in the summer of 2010 for a fee believed to be in the region of €2 million. He has since developed into an important first-team member at the Veltins Arena, and also impressed at Euro 2012 for his country.
The centre-back will not come cheap, though, as he has a contract with Schalke until June 2015.
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