Pirlo has been a reported target of the Stamford Bridge club ever since the arrival of former Rossoneri coach Carlo Ancelotti.

However, Berlusconi had a meeting with coach Leonardo and vice-president Adriano Galliani and now insists the Italy international is not for sale.

"Andrea Pirlo has been taken off the market," he told reporters. "He will stay with us and finish his career at Milan.

"You know that our Andrea Pirlo was wanted by Chelsea with a suitable economic offer.

"We also talked with the player and we decided to accept Leonardo's request to keep Pirlo."

The 30-year-old is under contract with Milan until June 2012.

Berlusconi also revealed the club are preparing to splash out on a big-name striker after seemingly failing in their bid to sign Sevilla's Luis Fabiano.

Talks have stalled between the two clubs after Milan had a reported 14million euro offer turned down by Sevilla, who were said to be holding out for a sum closer to the forward's 26million euro release clause.

Milan have so far refused to pay that but Berlusconi hinted they could increase their offer.

He added: "I have made the necessary funds available so that Galliani can immediately buy a great goalscorer to put alongside the pack of attackers who are already in the squad.

"You know the name, until this moment we have been working with Galliani on this front."

The Rossoneri have been relatively quiet in the transfer market despite netting around 65million euros from the sale of Kaka to Real Madrid

Pirlo is also delighted to see out his playing days with Milan.

"Today is a very good day," he told Milan Channel. "I am very happy to be able to finish my career here.

"This is thanks to the president Silvio Berlusconi, to Adriano Galliani and to Leonardo who, by taking me off the market, have given me the possibility to end my career here.

"When they told me the news I was very happy, finally the saga of this summer is over and we can continue the adventure in rossonero."

Pirlo has been with the Rossoneri since 2001, when he signed from bitter rivals Inter Milan and instantly formed a formidable partnership with Gennaro Gattuso.

And the World Cup winner admits he did consider leaving Milan.

He added: "I had the possibility of changing teams and adventure but at the end in mutual agreement, the club and I, decided to continue and we are all happier.

"It was a turbulent summer with many doubts but at the end, in my family, we are all happier to remain in Milan."