Chelsea target Andrea Pirlo has dashed the Blues' hopes of signing the Italian midfielder by insisting he will finish his career with AC Milan.
The Italy midfielder had been pursued by manager Carlo Ancelotti since his own arrival at Stamford Bridge from the San Siro in June.
But Milan president Silvio Berlusconi said the Serie A club are no longer considering bids for the 30-year-old.
"I am very happy to be able to finish my career here," said Pirlo.
The Rossoneri's chief executive Adriano Galliani had previously announced that a bid from Chelsea was too low.
Chelsea were reported to have offered about £6.75m plus striker Claudio Pizarro for the playmaker, whose Milan contract runs until 2012.
Ancelotti had convinced Pirlo to move to AC Milan from city rivals Inter Milan in 2001.
"I had the possibility of changing teams and adventure but at the end, the club and I decided to continue and we are all happier," said Pirlo.
Milan's Brazilian coach Leonardo, who finished his own playing career with the club at the age of 33, was keen to retain Pirlo's services.
"Andrea Pirlo has been taken off the market. He will stay with us and finish his career at Milan," said Berlusconi.
"You know that our Andrea Pirlo was wanted by Chelsea with a suitable economic offer.
"We also talked with the player and we decided to accept Leonardo's request to keep Pirlo."
Milan have relatively quiet in the summer transfer market after the sale of Brazilian forward Kaka to Real Madrid for £56m.
Strikers Luis Fabiano of Sevilla and Klaas Jan Huntelaar of Real Madrid have both been linked with moves to the Serie A club from Spain.
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