Berlusconi has blamed Ancelotti for their disappointing season and also questioned his treatment of star signing Ronaldinho.
Gazzetta dello Sport says the club is now split, with Berlusconi wanting to push out Ancelotti, while the players are desperate for the coach to stay. There is now only a 10 per cent chance of Ancelotti keeping his job, with Chelsea and Real Madrid waiting in the wings.
As far as replacements, the top two are Milan director Leonardo and Cagliari coach Massimiliano Allegri, with the Brazilian favoured by Berlusconi.
Milan vice-president Adriano Galliani is set for crunch talks with Berlusconi today. Galliani was visibly embarrassed having to defend the patron's comments after Milan's successful charity match in Albania last night.