AC Milan vice-president Adriano Galliani has revealed it is unlikely the club will be signing Real Madrid midfielder Kaka this month after announcing negotiations have 'broken down'.
Kaka, 30, has only made seven La Liga appearances this season and is keen to return to Italy in search of regular first-team football.
After Milan confirmed they were holding talks with Real Madrid over the weekend, Galliani poured cold water over the possibility of Kaka moving to the San Siro this season.
"The negotiation for Kaka has broken down," he told reporters on Monday. "It is not possible to complete the deal because of fiscal reasons...But we agreed on everything else."
Reports across the Italian media on Monday suggested that a loan deal for Kaka had already been completed, with Milan given the option to buy the midfielder at the end of his spell.
Galliani had said that all three parties - Real, Milan and Kaka - were keen to finalise the deal, although the 30-year-old was told to expect a pay cut for the deal.