But the 34-year-old, who said City first made contact last season before returning in the past few days, has rejected their advances after insisting he is happy at the San Siro.
"City were one of the clubs that wanted me in the winter so it's not as though their interest has come from nowhere, but AC Milan have a very clear position and I can live with that," he told Voetbal International.
"I feel good as a footballer and I am appreciated here. And my family feels at home here."
"They have the problem that Yaya Toure will spend considerable time away at the African Nations Cup," he said.
"In addition, they know that Mark van Bommel works very well with Nigel de Jong."
Raiola repeated Van Bommel's claim that a move is out of the question, however.
"The message from AC Milan is clear. Mark van Bommel is not for sale under any circumstances."