David Beckham will stay at AC Milan until the end of the season after a 'timeshare' deal was finally agreed with Los Angeles Galaxy.

The 33-year-old former England captain will then rejoin LA Galaxy for several months, before returning to Milan at the end of the year.

Beckham was scheduled to return to Galaxy on 9 March, but wants to make a permanent move to the San Siro.

It is understood he has agreed a salary cut to ensure the move goes ahead.

The only issue that has yet to be settled is Beckham's position at the end of next season - under the arrangement he will only be on loan at Milan until then.

However, under his current deal, Beckham does have an escape clause which comes into effect in November, halfway through the term, though he would have to pay hefty compensation to exercise it.

Milan vice-president Adriano Galliani refused to confirm the deal, telling the Italian media: "There are no updates but I am more optimistic.

"The Galaxy and us are going back and forward with corrections to the documents but we should be there although it's not official.

"We are on the right path. The crucial day for the signing could be today, tomorrow or Monday. But the important thing is that Beckham is here and that playing for Milan."

However, it is understood the 'timeshare' agreement means he will miss at least 17 games of this year's Major League Soccer season, which has a total of 30 matches per club, with his return to action in the United States now set to be on 18 July at the New York Red Bulls.

The Englishman, who signed a five-year deal with the Galaxy in January 2007, moved to Milan in January to stay fit during the Major League Soccer off-season and so maintain his bid for an England place.

But Milan have been so impressed with the former Manchester United and Real Madrid star that they moved to keep him for longer.

Beckham has scored two goals in nine Serie A games during his time with Milan.

The deal follows weeks of negotiations between the two clubs during which Milan baulked at the size of the transfer fee Galaxy were demanding - thought to be around £12m.

Beckham's desire to play for a top club in order to cement his place in the England squad for the 2010 World Cup finals led to him effectively funding the unique loan deal himself.