Leonardo faces limited transfer budget at AC Milan

Leonardo must accept AC Milan will not shop at the top end of the January market, it has been revealed.

La Repubblica says Milan president Silvio Berlusconi is pulling back from heavily investing in the club's playing staff - to the tune of 50 per cent.

A flagging Milan will be strengthened, however, in January with a new wing-back on the agenda, Rafinha of Schalke is a likely prospect. A midfielder - either LA Galaxy's David Beckham or Parma youngster McDonald Mariga - will also arrive along with a new striker, potentially Parma's Alberto Paloschi.

Former Roma coach Luciano Spalletti, meanwhile, is the latest to be linked with Leonardo's job.