Chelsea boss Carlo Ancelotti believes they've missed their chance in signing AC Milan striker Alexandre Pato.

Speaking in Italy on Monday, the former Rossoneri tactician denied that the Brazilian would be targeted by the Stamford Bridge outfit.

"Pato is happy and well in Milan," he noted today, after it was widely believed that Chelsea made an unsuccessful summer approach for the starlet.

While Ancelotti shut the door on Pato, he seemed to open it when asked about Atletico Madrid sensation Sergio Aguero.

"All clubs follow talented youngsters and he is certainly one, just like Pato," he added.

"We do have a problem in that we will lose some players to the African Cup of Nations, but I don't think we'll sign anyone in January."