AC Milan have been left disappointed by Real Madrid's €25 million asking price for Kaka.

Real have made it clear they won't sell Kaka for a penny less, with the deal needed to balance the club's budget this year.

Corriere dello Sport says Milan were hoping to take Kaka on a free loan - or for a fee worth around a third of Real's asking price - and negotiations over the player's return have now stalled.

An option open to Milan would be reducing Kaka's original €65 million sale price. With 50 per cent due Milan this year, reducing the actual money owed by Real would allow the two clubs to get closer to doing a deal.