Karim Benzema has reportedly turned down a chance to join AC Milan in favour of staying with Real Madrid, but the Italian giants remain highly interested in the French striker.
According to

However, according to another report from Italian paper Gazzetta (this time
Spanish rumours site Don Balon (via CalcioMercato) even claimed earlier in the week that Milan floated an offer of around €65m to Florentino Perez for the veteran forward. However, the site is notoriously unreliable.
Despite Real Madrid's well documented troubles this season, Benzema has had a fairly profitable campaign so far, picking up 10 goals and three assists in 18 appearances across competitions so far.
In light of this, it appears that Milan may not be deterred by their continued rejection as they seek a new striker - despite the presence of Gonzalo Higuain in their ranks and a rumoured interest in bringing back Zlatan Ibrahimovic back to San Siro.
Verratti wants to stay at PSG to win more trophies despite interest from some of the Barcelona and Juventus!
— 90min (@90min_Football) November 14, 2018
I guess Ligue 1 is a guaranteed trophy every season! 路♂️ https://t.co/cselXcqF50
However, according to Don Balon's report anyway, Los Blancos are more enticed to engage in negotiations with Milan's cross-town rivals Inter.
As opposed to the purely financial remuneration that the Rossoneri could offer them, Madrid could seek to seal a cash plus player deal for coveted Nerazzurri striker Mauro Icardi.