Italian news outlet Il BiancoNero have revealed the talented forward was very close to joining the Nerazzurri, however the move failed to materialise as Mauro Icardi opted to remain at San Siro - having previously being linked with both Real Madrid and Juventus.
Los Blancos had reportedly been set to move for Icardi after the departure of talisman Cristiano Ronaldo, but due to the player's high valuation the transfer never happened.
To make matters more complicated for Madrid, Ronaldo's new team Juve were also said to have registered an interest in the Inter striker. However, their capture of Ronaldo seemingly priced them out of making a move.
Nevertheless, either destination for Icardi would not have directly affected AC Milan in their move for Higuain. Had Icardi joined Juventus or perhaps even Real Madrid, Higuain's move to Inter may have been more feasible.
Both strikers will now go head to head for the opposing rivals in Serie A, with both teams attempting to provide some competition for Juventus and prevent them from achieving their eighth consecutive title.
Moreover, the pair will also face off in a battle for the Capocannoniere, with last year's title shared by Icardi and Lazio's Ciro Immobile.
Icardi's Inter got their Serie A campaign off to a bad start in their defeat to Sassuolo on Sunday, while AC Milan are yet to play after their game against Genoa was postponed following the Morandi bridge collapse.