AC Milan coach Carlo Ancelotti, who has been linked with the vacant Chelsea job, says he wants to remain in charge of the Serie A side.
"I'm staying at AC Milan for sure, and for many seasons to come," said the 48-year-old Italian in a statement.
"There has been no agreement with Chelsea. They are just rumours, the same ones that come up every year."
Milan vice-president Adriano Galliani added: "It is out of the question that Carlo Ancelotti goes to Chelsea."
Chelsea's search for a successor to Avram Grant goes on, and despite Ancelotti's insistence that he will not come to Stamford Bridge, sources in Italy suggest the door may not be entirely closed on a possible move to London.
Over the weekend, Galliani said his club had turned down a request from Chelsea to hold talks with their manager of seven years.
Despite his claim, Chelsea issued a statement on Tuesday denying they had asked to speak to Ancelotti.
"We're extremely happy with how our search is progressing"
"Chelsea has not reached agreement with any individual to become manager," said the Premier League club. "Nor have we sought permission from any organisation to talk to their manager."
On Saturday, Galliani had told the Milan website: "(Chelsea) asked for our permission and naturally everything stopped there.
"He (Ancelotti) and another Italian coach were at the top of Chelsea's list."
European football writer Gabrielle Marcotti told BBC Radio 5 Live he was not surprised that Ancelotti wants to remain with Milan.
"Ancelotti would be a great manager for Chelsea despite the fact that he doesn't speak English," he said. "But every indication I have is that he has no real interest in going abroad.
"He still lives on this farm in central Italy close to where he grew up and he has a long commute even to get to Milan.
"If a guy won't move from central Italy to Milan I find it unlikely that he would move all the way to London."
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Chelsea's statement followed reports the club had reached an agreement with Ancelotti's representatives to succeed Grant.
He was sacked on 24 May, three days after the club's Champions League final defeat on penalties to Manchester United, but the Blues issued an upbeat update on the search for a new manager.
"We're extremely happy with how our search is progressing."
Ancelotti led Milan to the Champions League in 2003 and 2007 and Serie A in 2004 after joining them in 2001 from Juventus.
As a player, he helped the Rossoneri to two Serie A titles and two European Cups, and he is one of five men to have won the Champions League as both a player and a coach.
In 2007, he signed two-year contract extension to keep him at Milan until 2010.
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