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Ancelotti denies Chelsea deal for Pato

Chelsea manager Carlo Ancelotti has insisted the Premier League club are not holding negotiations with AC Milan over the transfer of Alexandre Pato.

It was reported on Sunday that the two clubs had struck an astonishing deal that would see Chelsea pay a British transfer record of £45m and then loan the Brazil international back to the Serie A club for the 2009-10 season.

But former Milan coach Ancelotti, who signed Pato for the Rossoneri in 2007, said: "There will be no new players here at Chelsea. It is not true about Pato. He is a Milan player.

"Milan believe a lot in Pato, because they have sold Kaka, and so he is now a very important player for Milan.

"It is not true that Chelsea did offer for him."

AC Milan also rubbished the reports in an official statement, claiming they had no intention of selling their 19-year-old starlet.

"With regards to the rumours circulated this morning by the English press, AC Milan clarify and reaffirm that there are no negotiations ongoing with Chelsea regarding Alexandre Pato, and that the player is absolutely non transferable."

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