AC Milan chief Adriano Galliani claims that Silvio Berlusconi did not criticise Carlo Ancelotti and that the Chelsea target is staying at the club.
Milan owner Berlusconi was quoted as saying that he blamed Ancelotti for their failure to challenge for the Serie A title, but Galliani says that he was misquoted.
The club's general manager has once again underlined that Ancelotti - and star player Kaka - will be staying at the club regardless of interest from Chelsea.
"I just spoke with Berlusconi on the phone and he was flabbergasted," Galliani is quoted as saying in La Gazzetta dello Sport.
"I have also talked with him over the past few days and his ideas were not the same as those that were attributed to him. These declarations were only published in one newspaper in Italy.
"Carlo has a contract with us until 2010 and he will be sitting on the Rossoneri bench next season."
Meanwhile, AC Milan star Gennaro Gattuso claims Ancelotti will not be joining Chelsea as the coach plans to stay with the Rossoneri.
Gattuso, who is currently recovering from a cruciate knee ligament injury, believes rumours of his exit are wrong and that Ancelotti wants to stay with the Italian giants.
"I understand that Ancelotti is valued here and that he wants to stay put," Gattuso told La Gazzetta dello Sport.
"What the president says is law but I think we've had a few injuries which made a difference and Inter deserve the title."