Milan agreed a fee with Porto last week for the defender but a medical revealed a tooth problem which could affect his posture.

A loan deal with the option to make the transfer permanent was put to the Portuguese champions but, after negotiations, no agreement was reached, forcing Milan to pull out.

Milan managing director Adriano Galliani said: "Aly Cissokho's transfer has fallen through.

"Unfortunately, Porto's fee for the loan deal was too high."

It is a huge blow for the 21-year-old, who had spoken earlier in the day of his optimism that a deal would eventually be brokered.

"It's true that in my first medical examination a tooth problem emerged," said =Cissokho to Corriere dello Sport.

"But then I took another medical which I passed. It's not a problem that cannot be solved in a short time.

"I have signed a pre-contract and now I am going on holiday to Senegal."

One man who is likely to be at the San Siro next season is experienced midfielder Andrea Pirlo.

The Italy international was quoted yesterday as suggesting he was keen on a move to Chelsea this summer to work alongside former Milan boss Carlo Ancelotti but he denies making such claims.

The World Cup winner, who is in South Africa playing in the Confederations Cup, said on Milan's official website, www.acmilan.com: "I have not made any of the comments that have been attributed to my name."

The 30-year-old, who is under contract at the San Siro until June 2011, made 26 league appearances as AC Milan finished third in Serie A last season.