Essien has flown in for talks and a medical with Clarence Seedorf's underachieving Serie A club.
The Ghana international, who joined Chelsea in 2005, has made nine appearances this season since returning from a loan spell at Real Madrid.
"I'm happy to be here. I will do my best for Milan and I hope to be ready to play," the 31-year-old said.Essien was Chelsea's record signing when he arrived from Lyon for £24.4m.
"I spoke with Mr Seedorf two days ago. I cannot wait to be available.
"I really want to thank the chairman and the team and thanks to (Chelsea boss) Jose Mourinho, who has allowed me to wear the Rossoneri shirt."
A Chelsea statement on Friday night confirmed a deal had been struck with Milan for the Ghana international.
It read: 'Chelsea Football Club and AC Milan have reached an agreement for the transfer of Michael Essien to the Serie A side.
'Essien has travelled to Italy and the completion of the move is subject to him agreeing personal terms with Milan and passing a medical examination.'
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