Although Kaka was denied by goalkeeper Alberto Fontana early in the first half, the Brazil international put on an inspirational performance up front.

"Kaka played his best first half since he joined AC Milan," said Ancelotti.

"He was amazing, he created so many goalscoring opportunities.

"The penalty miss can happen, he hadn't missed a penalty before and he took it and will continue to take them."

Ancelotti had hoped for a better result but it was not to be as the Rossoneri saw their four-game winning streak brought to an end.

The result left Milan three points behind fourth-placed Lazio with 12 games left to play.

"We should have put the game beyond Palermo's reach in the opening 45 minutes," Ancelotti added.

"But I'm nevertheless satisfied with my team's performance."

Milan must brace themselves for a challenge in the Champions League qualifying race with Lazio determined to hold onto their current position.

Lazio coach Delio Rossi should have been all smiles after his team struck three times in the second half to clinch a come-from-behind victory against Catania in Rome.

However, the Biancoceleste boss was less than pleased with his team's lack of focus in the opening 45 minutes.

"This is an important win but it should also serve as a lesson to us," said Rossi.

"We failed to come out of first gear in the first half and in the end my players won because they wanted to.

"But we took unnecessary risks and we didn't play as we could or should have.

"I reiterate that as long as we play as we know we can, we will do well.

"The battle is within us, we depend on ourselves."

Meanwhile, Fiorentina coach Cesare Prandelli praised his players after they fought back to earn a 1-1 draw at Reggina thanks to Adrian Mutu's late penalty.

"It has been a difficult game," admitted Prandelli.

"My players did well to react and to surge forward and in the end our efforts paid off. We take home an important point."

The result left the Champions League hopefuls trailing eight points behind Lazio.

This weekend, Fiorentina take on Torino while Milan host Chievo and Lazio entertain Sampdoria.