Real Madrid is set to meet the demands in a bid to edge out competition from Manchester United for the highly rated midfielder.
With Real Madrid prepared to offer more money, Savic could well be on his way to the Los Blancos.
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Manchester United want to sign Milinkovic-Savic and are aware of Lazio's £100m valuation.
The Lazio midfielder has been linked with a move away from the Biancocelesti, particularly since they slipped out of the Champions League places on the final day of the Serie A season.
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However, Milinkovic-Savic admits he will announce the decision over his future after the World Cup in Russian Federation.
Where do you think Milinkovic-Savic will be playing next season? Real Madrid is preparing a huge bid of £132m to secure the services of the 23-year -old midfielder, according to Italian newspaper II Messaggero. Midfield is a priority as well, with the futures of Mateo Kovacic and Toni Kroos up in the air, and Luka Modric in the twilight years of his career.
Sergej Milinkovic-Savic has finally broken his silence on speculation linking him with a move to Manchester United. With Perez looking to freshen things up in the middle of the park, Milinkovic-Savic is a viable target.
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However, United may be put off by the Serbia international's fee, with Lazio setting an asking price of £87.5million.