Milan revealed Real Madrid “wanted €18m for Kaka” and released their updated Champions League squad list.
The Rossoneri had been in advanced negotiations for the Brazilian before opting to pay €20m plus performance-related bonuses for Manchester City striker Mario Balotelli.
“The story with Kaka is definitively over,” explained Vice-President Adriano Galliani.
“Real Madrid wanted €18m for Kaka, but taking into account his age and the cost of his salary, it was frankly impossible.”
Milan released their Champions League list for the second half of the season, which cannot include Balotelli because he is cup-tied.
Nigel De Jong is included despite the fact he is out for the rest of the season with an Achilles tendon injury.
Milan Champions League squad: Abate, Abbiati, Ambrosini, Amelia, Antonini, Boateng, Bonera, Constant, De Jong, De Sciglio, Robinho, El Shaarawy, Flamini, Bojan, Mexes, Montolivo, Muntari, Niang, Nocerino, Pazzini, Traorè, Gabriel, Yepes, Zapata; Cristante, Ganz, Narduzzo, Petagna
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