The Brazilian has been linked with a move to the newly-formed Major League Soccer side in time for their debut next year, but the club that the 32-year-old began his career with say that he will join them on loan for the six months beforehand.
Vice-president Ataide Gil Guerreiro told Sportiv: "After 60 days of negotiations we have reached an agreement, but there isn't anything formal yet. There are steps to be taken but when it comes to values, there is an agreement between all parties involved, Milan, MLS, Orlando, Kaka and Sao Paulo.
"He will sign a contract with the MLS. Clubs can choose three designated players, Orlando choose Kaka. He will undergo a medical and will join Orlando, then he will be loaned to Sao Paulo for six months until December 31.
"Not only is Kaka excited, but he is also physically peaking. The problems at Real Madrid were due to arguments and positioning with the manager. As Milan don't have a good squad, he has a clause allowing him to leave. He will come to Sao Paulo very motivated."