Italian newspaper La Repubblica had reported the Ghana international failed tests related to an old anterior cruciate ligament knee injury.
News of that went viral on micro-blogging website Twitter and also on Facebook which meant his much-anticipated move had fallen through.
But after a couple of hours, new reports from Sky Sport Italia and the Corriere dello Sport maintained he passed the second round of stress tests at the Milanello training ground.
Essien then took to Twitter to post on his official page: “Haters will broadcast your failure but whisper your success.Medicals done, looking forward to start my new life with AC Milan. â€
The 31-year-old is expected to complete his free transfer from English giants Chelsea on Monday.
Essien will put pen to paper to an 18-month contract.