The 30-year-old Ronaldinho is currently in Brazil and his brother Roberto Assis said Flamengo, Gremio and Palmeiras are all trying to sign the player, with a deal expected to be sealed in a few days' time.
Assis has met with the clubs' representatives and is analyzing their offers.
"We don't know what's going to happen yet, but we want him playing in Brazil again," Assis told the GloboEsporte.com website.
Ronaldinho left AC Milan's training camp in Abu Dhabi on Friday and was authorised to travel to Brazil to negotiate his future even though he is still contracted to the Italian club.
Milan coach Massimiliano Allegri said that Ronaldinho had made a decision to "change his life, go back to Brazil."
Ronaldinho has only made seven starts for AC Milan in Serie A this season and now seems set to follow the likes of Ronaldo and Adriano in returning to Brazil in search of improved fortunes.
Ronaldinho won consecutive FIFA World Player of the Year awards in 2004 and 2005 while with Barcelona and led the Spanish club to the Champions League title in 2006. He also helped Brazil win the 2002 World Cup.
After leaving Barcelona to join AC Milan in 2008, Ronaldinho struggled to establish himself at the Italian club. He also disappointed with Brazil at the 2006 World Cup and has featured infrequently for the national team since then, including missing out on last year's World Cup in South Africa.
Financial details on the terms of Ronaldinho's potential transfer have not been disclosed. All three Brazilian clubs in the hunt say they are seeking partnerships with sponsors to have enough money to afford the forward.
Milan reportedly wants nearly €8 million to release the player.
Ronaldinho has previously expressed a desire to play for Flamengo, Brazil's most popular club. Former Brazil teammate Adriano, who helped Flamengo win the Brazilian league last year after leaving Italian side Inter Milan, said he had spoken to Ronaldinho about his decision.
"I told him that sometimes it's important to follow his heart," Adriano, currently back in Italy with AS Roma, told Brazilian media.
Gremio is the team where Ronaldinho started his career in 1998, while Palmeiras, an eight-time Brazilian champion, is coached by Luiz Felipe Scolari, who worked with the player when Brazil won the 2002 World Cup in South Korea and Japan.
