AC Milan vice-president Adriano Galliani has revealed talks to bring Chelsea striker Andriy Shevchenko back to the San Siro are "frozen" because of a disagreement between the two clubs.
Reports on Wednesday suggested Shevchenko could return to Milan in what would initially be a season-long loan deal following a meeting between former club president Silvio Berlusconi and Chelsea owner Roman Abramovich in Sardinia last Thursday.
Rosseneri director Silvano Ramaccioni announced on Wednesday that a deal was close, while the Italian press claimed the deal would be finalised on Thursday or at the latest 24 hours later.
However, Galliani revealed on Thursday that the proposed loan deal fallen through.
"Negotiations for Shevchenko are at the moment frozen," he told Gazzetta dello Sport.
"Milan had wanted to take the player on loan with the right to buy him, but Chelsea said no because they wanted us to buy him outright.
"Therefore negotiations are through."
The news appears to signal the end of Milan's summer-long pursuit of a player who has endured two disappointing years at Stamford Bridge following a big-money move from the Italian giants in 2006.
The Ukraine striker remains a firm favourite at the San Siro, where he still stands as the club's second-most prolific goalscorer of all-time having scored 127 goals in 208 games during a seven-year career.
