The 30-year-old has been offered a deal worth about £20m over three years by Premier league side Blackburn.
But AC Milan coach Massimiliano Allegri said on Wednesday: "Ronaldinho has made a life choice by going to Brazil."
Brazilian media outlet Radio Globo said Ronaldinho was in Rio De Janeiro to sign a three-and-a-half-year contract.
The two-time world footballer of the year's current deal with Milan expires at the end of the season and, with the Rossoneri having already signed Antonio Cassano from Sampdoria this week, there is no space for the former Barcelona star in Allegri's line-up.
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On Tuesday, Blackburn revealed they had made a move for the playmaker and Venky's, the company that bought Rovers in 2010, said its Brazil office was in talks with Ronaldinho's manager.
"He is keen to play in the EPL [English Premier League] and I think that goes in our favour," Venky's chair Anuradha Desai told BBC Radio Lancashire.
Ronaldinho is in his native Brazil after leaving AC Milan's winter training camp in Dubai.
He moved to Milan from Barcelona in 2008 but lost his place in the starting XI after the club signed forwards Zlatan Ibrahimovic and Robinho last summer.
