General director Roman Babaev has clarified the club's position over the Japan star, who has long been a target of the Rossoneri.
He told Sport Express: "The ball is in Milan's court now. Our position is clear - we are ready to let him go if we receive a reasonable offer."
Honda will be out of contract in December, meaning he is already free to negotiate a pre-contract agreement with other clubs, but reports in Italy claim Milan are keen on a cut-price deal to push through a transfer this summer.
Babaev admits such a scenario is a possibility, but does not want his club to be taken advantage of in the market.
"The situation has not changed. Honda could be speaking to another club at the moment because the rules allow it," he continued.
"We are pleased that Milan are interested but we also have to be realistic. Yes, his expiring contract affects his market value but there is a limit as to how low we can go.
"We are not worried if he ends up leaving the club on a free transfer. It is a difficult decision to make - part ways with Honda now or keep him until his contract expires.
"We are interested to see how this progresses."
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