The 23-year old Brazil international has made just seven appearances for the Rossoneri this season after returning from injury and has been heavily linked with a return to his homeland in the form of a loan.
There was also talk of a swap move involving Manchester City's Mario Balotelli, which was quickly quashed by president Silvio Berlusconi, but Veloz insists that Pato is happy at the San Siro and won't be going anywhere just yet.
"Pato is doing well in Europe, he doesn't need to return to Brazil," Veloz told O Tempo.
"He has 18 months left on his contract; it's unthinkable that an expensive player like him would be loaned out."
Regarding the Balotelli swap he added: "I can't talk about something that doesn't exist. Nothing about that came to me.
"When there is something concrete, we can talk. But right now, he is happy at Milan."