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Former Arsenal boss Arsene Wenger has been leapfrogged by Roberto Donadoni in the race to become the new AC Milan boss, according to Gazzetta dello Sport.
The San Siro side are now understood to be ready to ditch current coach Gennaro Gattuso after a poor start to the season.
Milan have won just three times in eight Serie A matches and they currently sit 12th in the table.
The club had been weighing up whether to sack Gattuso, who was handed a three-year contract in June, and replace him with Wenger.
But Donadoni is now the frontrunner to takeover at Milan.
The 55-year-old is, like Wenger, currently a free agent after his contract with Bologna expired in the summer.
And the Italian, who coached his country to the quarter-finals of Euro 2008, is said to have plenty of backing from within the Milan squad.
The likes of midfielder Riccardo Montolivo are pushing for his appointment and that has persuaded the Milan board to act.