Milan beat Chelsea in race for Brazilian wonderkid

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The 17-year-old, hailed by some pundits as the new Kaka, will move from Internacional, the FIFA Club World Champions.

Scroll down to read more:

The new Kaka: Pato snubbed Chelsea to join AC Milan

A statement posted on the www.acmilan.com website on Thursday evening confirmed a deal had been struck but did not disclose the terms.

The statement from the European champions read: "The highly-talented Alexandre Pato will train with Milan and will be able to play friendly matches from September 3, 2007.

"From January 2008, he will be eligible for competitive games."

Reports suggest Pato will sign a five-year contract with the Rossoneri and Italian daily La Gazzetta dello Sport reports that the deal is worth £9.8million to Internacional.