Ancelotti and the board were locked in crisis talks for two and a half hours on Monday following the Rossoneri's second successive defeat on Sunday.

Following the talks, Sky Sport 24 reported that club vice-president Adriano Galliani and general director Ariedo Braida had spoken in favour of firing Ancelotti, but technical director Leonardo talked them out of it.

However, a statement on the AC Milan website described that as "totally lacking in foundation".

"The story reported by Sky Sport 24 which claimed the coach of Milan, Carlo Ancelotti, was saved in his job by Leonardo against the opinion of Adriano Galliani and Ariedo Braida is totally lacking in foundation," said the statement.

Earlier, Ancelotti emerged from the talks but gave away little about his future with the club.

"We had a reunion to find the most fitting coaching solution," he said. "Did we find it? Yes."

Also present at the meeting were chief medic Jean Pierre Meersseman and athletic coach Daniele Tognaccini.

Ancelotti has been in the hotseat at Milan for seven years, and has led them to a host of trophies including the Scudetto, the Coppa Italia and two Champions League titles - the last of which came as recently as 2007.

Galliani had given Ancelotti a vote of confidence following the 2-0 defeat at Genoa, which left the Serie A giants rock-bottom of the table with no points from their opening two games.

The Milan chief was adamant the club was not considering a change of coach, at least in his public statements.

"Ancelotti will remain the coach of AC Milan," he said. "I will not say it again and not because I will change my mind about this but rather because it becomes repetitive.

"I dont want to hand any excuses but up to now we haven't had time to train together as a team due to many of our players having had to play for their respective national teams.

"Now we have three weeks to ourselves and we must continue to work hard."

The Rossoneri will have little time to rest as they begin their UEFA Cup campaign on Thursday when they host FC Zurich, before welcoming early Serie A table-toppers Lazio to the San Siro three days later.