AC Milan and Inter have signed a Memorandum of Understanding establishing their willingness to work together on a project which could culminate in the construction of a new shared stadium.
AC Milan have played at San Siro since 1926, and they have held joint tenancy with Inter since 1947. The legendary stadium is showing its age though and needs to be either renovated or replaced.
In a statement released by AC Milan, they outline their vision for a 'modern, state-of-the-art stadium' with the infrastructure to deliver a 'world-class fan experience'.
Both clubs have agreed that continuing to share a stadium with each other is the most viable solution, and they will now press forward with discussions of the available options.
"The Clubs believe that a shared stadium will serve in the best interests of all stakeholders from a financial, administrative and technical perspective," reads the statement.
"We are evaluating several possible options, including a complete renovation of the existing San Siro Stadium. A joint task-force to analyse all options accordingly has also been re-established.
"The Clubs aim to conclude an initial evaluation phase by the end of the year, in order to commence the technical and administrative activities required to deliver a modern stadium to their fans in the shortest possible timeframe."
It is hoped that a new stadium will help the two Milan clubs catch up with Juventus, who have won every Serie A title since moving into their new stadium in 2011.
AC Milan last won the Scudetto in 2010/11, with Inter's last title coming the season before in 2009/10.