The Italian boss has been touted as one of the favourites for the Stamford Bridge hotseat since the sacking of Avram Grant.

And Galliani confirmed on Saturday the London club had been in touch, but they had not been allowed to meet with Ancelotti.

He told www.acmilan.com: "Chelsea? No, they didn't meet with him because they asked our permission and there everything halted.

"Him and another Italian coach were on top of Chelsea's wish list and the fact our coach is sought after and well seen gives me great pleasure. But Carlo Ancelotti is and will stay Milan's coach."

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Roberto Mancini, sacked as coach of city rivals Internazionale on Thursday, and Portugal boss Luiz Felipe Scolari are believed to be other contenders.

But Galliani is determined his coach will be staying where is.

"We will continue with him for a long time because he and the club are on the same wavelength," he said.

"Our relationship has been ideal since the first day."

Ancelotti has been in charge of Milan since 2001, in which time the Rossoneri have won one Serie A title, one Coppa Italia and two Champions Leagues.

This past season was a disappointment though - they finished fifth in the domestic league, failing to qualify for next term's Champions League.

Ancelotti is contracted with the Milan until 2010.

Galliani earlier revealed the Italian giants were in the process of building a competitive side for Ancelotti to lead next year, with the emphasis being on returning the club to the top of Serie A.

Barcelona duo Samuel Eto'o and Ronaldinho are on their wanted list, but the Milan vice president warned the club would not pay over the odds to get the players they want.

"The team we'll put together will be able to fight for the Scudetto, which is our primary objective," Galliani told Italian newspaper Corriere dello Sport.

"(Samuel) Eto'o is the object of our desire as Ancelotti likes him a lot.

"(Barcelona president Joan) Laporta has no preference between (selling to) Internazionale and Milan, but he asked for 50 million euros and I ran away.

"The other names we want you already know, they're the ones all of Europe is talking about, the best: (Didier) Drogba, (Emmanuel) Adebayor, (Mario) Gomez, (Karim) Benzema.

"Ronaldinho? He's on the list, but behind these others."

On Chelsea's Andrei Shevchenko, who Milan hope to take back to the San Siro, Ancelotti added: "As for Sheva, we'll see. I don't know what will happen."