AC Milan will not sell playmaker Kaka despite saying they are aware that the Brazilian's father has held a meeting with Real Madrid.
"We can confirm we will not sell Kaka but we knew about this meeting because we were already informed of it by Kaka's father," Milan vice-president Adriano Galliani told the club website.
Galliani said top Spanish clubs could afford to pay players more than Italian sides could because of tax reasons and this was why Kaka's father had held talks with Real.
"Kaka is certainly not for sale but this offer is born out of the different fiscal constraints between Italy and Spain which give an advantage to the top Spanish sides compared to the top Italian clubs," he said.
Kaka, widely regarded as one of the best players in the world, was instrumental in leading Milan to their seventh European Cup triumph last season.