Berlusconi, speaking for the first time since announcing on Monday that Kaka would remain at his club having turned down a reported £100million move to Manchester City, insists he is not concerned by the reported interest in his star player from Real Madrid.

The Spanish champions - who are expected to launch a bid for the player when presidential elections begin in the summer - have failed with bids in the past for the 26-year-old, and Berlusconi believes they will do so again.

"Kaka and AC Milan have already responded to Madrid in the past. I see no reason why this would change," said Berlusconi in an interview with Italian sports newspaper Quotidiano Sportivo.

"Kaka's strong bond with AC Milan has been eloquent in recent days."

He added: "I confess a secret that when Ricky (Kaka) announced to me his decision to remain at Milan I thought about my father and the many Sundays he went to the stadium to support AC Milan.

"The genuine enthusiasm in which he supported the Rossoneri colours, even in defeat, and that enthusiasm my father transmitted to me.

"My father would have been proud of this Milan, a team in which champions like Kaka develop.

"(His decision to stay) feels like if we have won another Champions League title.

"I am extremely proud of Milan because I truly believe it is the only club where these things can happen."

The Italian prime minister also backed City to become a big player in the Premier League and in Europe in the next few years despite their failure to land Kaka.

"The new owner of Manchester City (Sheikh Mansour bin Zayed Al Nayan) is doing a great job in constructing a competitive team that will have a starring role in the Premier League and at European level," he said.

"They are investing generously and he will make Manchester City, a team currently not well known in Italy but with strong traditions, one of the starring teams in European football in the coming years.

"I hope he succeeds because he deserves it."

Berlusconi admitted his club were surprised by the tempting offer they received from City for their top player.

However he insisted the failed transfer has not damaged his relationship with the Sheikh and reiterated that it was Kaka and not Milan who rejected the club's overtures.

"Certainly Milan would not spend that sum of money, and would neither pay those kind of salaries. I realise that people could be bewildered hearing about certain sums of money considering the difficult financial situation," he said.

"Had he been in my shoes, I think the Sheikh would have done the same thing. Our rapport is excellent.

"Had Kaka felt that his professional and financial future would be in Manchester, we would have respected his decision. But we are all happy that it has not turned out like this.

"We allowed Kaka freedom to decide his future as we are accustomed to do. Milan does not hold a player against his will and proof of this is Andriy Shevchenko's departure two years ago."

Kaka, who is the highest earner at Milan at an estimated 9.5million euros per season and whose contract with the Rossoneri runs until June 2013, would have almost doubled his wages at City.

The fact that he rejected such riches without insisting on an improved deal with the Italian giants makes the whole saga even more intriguing in Berlusconi's eyes.

"What makes Kaka's decision more extraordinary is the fact that he knew very well that Milan could not increase his salary as our balance does not allow us to do that," he explained.

"Kaka has decided to stay knowing that his salary will not be increased in the next coming years."