Following a hard first season at the Chelsea, Morata was hopeful of turning his fortunes around under new manager Maurizio Sarri, but it has again been the same story.
The Portugal global scored just two Serie A goals for Milan last season before being shipped out on loan to Sevilla in the summer.
The same report claims that the deal would only be a loan move until the end of the season without an obligation to buy.
Chelsea striker Alvaro Morata is believed to be edging closer to an exit, with his agent reportedly set to negotiate with a LaLiga outfit.
Morata is now widely expected to leave Chelsea this month and few of his teammates will miss him, with his "meek attitude" becoming a source of frustration among his teammates.
"The style does not suit him and he will go back".
Sevilla were also interested but they backed out due to Chelsea's excessive financial demands. Nothing has been signed.
Chelsea FC are now in fourth place in the Premier League table as they look to try and qualify for next season's Champions League.
The west London side are preparing for their home Premier League clash against Newcastle United at Stamford Bridge on Saturday night.
After missing out on other targets to replace the ineffective Morata, however, The Sun suggests that Silva has now been targeted by the Blues.