Milan's vice-president Adriano Galliani told a news conference in Rio on Thursday the Italian side will seek a fee for the 30-year-old forward whose current deal ends in June.
"I'd like to make it clear that Milan have not rescinded their contract with Ronaldinho," said Galliani, who jokingly stated a preference for a move to Flamengo who wear the same red and black colours as Milan.
"Ronaldinho is going to see which is the best decision for him and he will tell Milan. Milan and Ronaldinho will decide together."
"I want to return to play the championships in Brazil. I didn't get the chance to win many leading titles in Brazil and at this stage in my career I wanted to come back to Brazil," he told reporters at Rio's Copacabana Palace.
"Everything that's happening is because today (Thursday) I reached an agreement with Milan. I'm free to continue my life here in Brazil," added Ronaldinho while outside hundreds of fans of Rio-based Flamengo gathered for a glimpse of the player.
Ronaldinho's brother and agent Assis added: "We have a deal with Milan that allows us to talk to Brazilian clubs. Ronaldinho is under contract but we have this freedom.
"We have a very important contract (at Milan), all of you know the figures surrounding Ronaldinho (but) we will find a solution and soon we will have a decision."
"This is the start of an important stage in which everyone is looking at the World Cup and I'd like to be here to continue my career in Brazil," he said.
Ronaldinho's first club Gremio, 2009 champions Flamengo and Palmeiras, managed by former Brazil, Portugal and Chelsea coach Luiz Felipe Scolari, are all interested in signing the forward.
There was a wrangle over a fee, with soccer's world governing body FIFA intervening, and his possible return is seen by Gremio fans as a chance for Ronaldinho to redeem himself.
