After reports emerged that AC Milan and Real Madrid had finalised a loan deal for former Rossoneri star Kaka, the Italian club have poured cold water on the move.

Kaka has been frozen out of contention at the Bernabeu, and recently admitted that he was keen on a return to the San Siro.

The initial understanding was that Milan simply could not afford to meet Kaka’s wage demands.

But it then seemed as if the Serie A club’s bigwigs had found a way to bring Kaka back.

However, late on Monday night, AC Milan’s vice-president- Adriano Galliani- admitted that talks with Los Blancos over Kaka had “broken down.”

"The negotiation for Kaka has broken down," Galliani told reporters.

"It is not possible to complete the deal because of fiscal reasons...But we agreed on everything else."

Barring Kaka accepting a wage cut, or Milan and Real thrashing out a last-ditch agreement, the Brazilian will have to seek another club where first-team football, and cash, is on offer.