The Italian giants looked set to sign the out-of-favour Brazil playmaker but have backtracked after failing to agree a transfer fee with the Catalan club.

Milan were reportedly prepared to offer 20 million euros for the 28-year-old but Barca were said to have demanded twice that amount.

And after 24-year-old Flamini arrived from Arsenal on Monday night, Berlusconi admitted outright he has no intention of pursuing Ronaldinho.

"Flamini is the best midfielder in Europe and I'm not interested in Ronaldinho," Berlusconi told Italian newspaper Gazzetta dello Sport.

Instead it seems the Rossoneri are set to turn their attention to another Frenchman - Bayern Munich's Willy Sagnol.

According to another Italian newspaper, Corriere dello Sport, the two clubs have agreed terms for the right-back.

However, Sagnol has claimed a deal is yet to decided and revealed another top club are also interested in his services.

"The Milan directors have been coming back for me on a regular basis for the past six years and I'm very proud to be getting such attention," he told French newspaper L'Equipe.

"But when it comes to transfers things can happen very quickly. AC Milan and another massive European club, but not an Italian one, are interested in me.

"All I can say is that I'll make my choice before Euro 2008, which is my big objective. I want to be calm when I get there."