The Argentine striker was taken on loan on a two-year deal from Chelsea.
Exhausted Inter Milan risked surrendering their long-held Serie A lead after drawing 1-1 at fourth-placed Palermo on Saturday.
The Champions League's two most successful teams resembled a pair of punch-drunk prize-fighters as AC Milan spoiled a big night for Raul by pulling off a surprise 3-2 victory at the Bernabeu Wednesday. While nine-times winners Real and seven-times champions Milan were trading novice mistakes, including the howler that let in Raul to equal Gerd Mueller's European goalscoring record, the other tournament heavyweights were looking coolly efficient.
AC Milan are still interested in Manchester City forward Carlos Tevez but only want to sign players on loan in the January transfer window, chief executive Adriano Galliani said on Monday.
Manchester United captain Nemanja Vidic will join Inter Milan for next season, the Serie A side announced on Wednesday.
Lionel Messi needs one more goal to break the Champions League season record of 12 goals, as title holders and favourites Barcelona visit AC Milan on Wednesday with the odds firmly stacked against the injury-hit Serie A team.
The Argentine teenager has been out of action after he tore a thigh muscle during the Champions League match against Chelsea
Inter were 4-1 up after Marco Materazzi scored in the 68th minute but the defender's excessive goal celebration led to him being sent off for a second yellow card and his side were then left to struggle with 10 men.
Last week's Champions League first leg quarter-final in Lyon ended goalless, leaving Milan needing a victory as a scoring draw would send the French side through on the 'away goals' rule.
Take a peek at the backstage action minutes before models get ready to scorch the runway at Milan.
AC Milan moved to within a point of Juventus at the top of Serie A on Wednesday after the defending champions beat Atalanta 2-0 and a Gianluigi Buffon error gifted lowly Lecce a 1-1 draw in Turin.
Serie A leaders Inter Milan ground out a 1-0 victory at Chievo and Juventus ended their bad run with a similarly battling 2-1 win at Parma on Wednesday.
AC Milan have denied British media reports that they are about to sell Brazil playmaker Kaka to Chelsea. The Guardian newspaper had reported on Saturday that negotiations for a 100 million euro ($158.5 million) transfer were at an advanced stage after talks this week.
Andrea Pirlo will spend the rest of his career at AC Milan and will not join former boss Carlo Ancelotti at Chelsea, the Serie A club's owner Silvio Berlusconi said on Wednesday.
There were renewed calls for action against racism in Italian football on Friday after Inter Milan fans were accused of abusing Tottenham Hotspur striker Emmanuel Adebayor in a Europa League last 16 clash in the San Siro.
Juventus bounded to the top of Serie A by securing a battling 2-0 victory at Palermo after former striker Amauri condemned AC Milan to a 2-1 defeat at home to Fiorentina on Saturday.
Alexandre Pato fired home in injury time to give AC Milan a lucky 2-1 win at Fiorentina on Wednesday to send the Rossoneri up to second in Serie A.
AC Milan have agreed to sign Ghanaian forward Dominic Adiyiah from Norway's Fredrikstad in January while a loan deal for David Beckham will be announced soon, chief executive Adriano Galliani said on Saturday.
Brazilian Kaka looked a player reborn while producing a superb display in AC Milan's 1-1 Champions League draw with Barcelona on Tuesday.
Italy and AC Milan forward Antonio Cassano will be out for a "few months" and needs heart surgery after falling ill at the weekend, the Italian champions said on Wednesday.
Zlatan Ibrahimovic curled home a stunning freekick and then turned provider as AC Milan moved to within one point of Juventus at the top of Serie A with a 3-0 home win over Cagliari on Sunday.
AC Milan are keen to take David Beckham back on loan from Los Angeles Galaxy in January, the England midfielder's spokesman said on Wednesday. England manager Fabio Capello has said he must return to Europe to have any hope of playing at the 2010 World Cup.
AC Milan have agreed a deal with Real Madrid to make Dutch striker Klaas-Jan Huntelaar their first major signing of the close season.
Milan missed the chance to jump to second and remained fourth with 48 points
Modest Udinese, whose coach Francesco Guidolin's target this season is to avoid relegation, went top of Serie A on Sunday with a 2-1 win over Chievo while AC Milan were held 2-2 at Bologna.
David Beckham said for the first time on Wednesday that he would like to quit LA Galaxy in the United States and make a permanent move to AC Milan.
Colombian singer-songwriter Shakira was present at the Nou Camp with son Milan to support partner Gerard Pique.
Playmaker Kaka breathed new life into struggling AC Milan by scoring twice and 18-year-old Bryan Cristante claimed his first professional goal as they beat Atalanta 3-0 on Monday for only their fifth league win of the season.
A decision on the future of AC Milan playmaker Kaka will be taken on Monday, club owner Silvio Berlusconi said on Wednesday.
The Argentine midfielder agreed a three-year contract with the Serie A side.
Mario Balotelli rifled in a second-half free kick to help troubled AC Milan to a 3-1 win at bottom club Catania in Serie A on Sunday, ending a chaotic week for the seven-times European champions.
Gennaro Gattuso finally had fans talking about his talent rather than his temper after his rare goal gave AC Milan a 1-0 win at beleaguered Juventus and stretched their Serie A lead to eight points on Saturday.
Domenico Berardi converted a penalty in the fifth minute of injury time on Sunday to give Sassuolo a shock 1-0 win away to Serie A leaders Inter Milan, who dominated the match but were repeatedly foiled by the visitors' goalkeeper Andrea Consigli. Berardi sent Inter goalkeeper Samir Handanovic the wrong way to complete an extraordinary win for Sassuolo, who were beaten 7-0 in the same fixture last season, as Inter coach Roberto Mancini watched in disbelief.
New strikers Carlos Bacca and Luiz Adriano bagged their maiden Serie A goals to give AC Milan their first points of the season with a 2-1 home win over Empoli on Saturday.
Buoyant AC Milan moved clear in second spot in Serie A with a 3-0 home win over 10-man Palermo on Sunday, putting a modicum of pressure on leaders Inter Milan.
