A statement released by Milan confirmed Ancelotti has now told the Rossoneri "cannot be our Coach next season."
Ancelotti said in a Press conference last week that he'd "take a year off" if he was indeed sacked by Real Madrid.
"Thanks to Milan for their support and interest. It was hard to say no to such beloved club to me but I need some rest. I wish them the best," wrote Ancelotti on Twitter this evening.