The AC Milan CEO has revealed the Italian side were priced out of signing the Brazilian midfielder, saying that their desired figure was "unthinkable"
The Brazilian enjoyed immense success during a six-year spell at the Italian side but has struggled to leave a lasting impression in the Spanish capital, leading many to believe that there was a possibility that he would make a return to Milan.
However, Galliani has spoken out as to why the projected move failed to come to fruition.
"The story about Kaka is a closed chapter for me," he told Corriere dello Sport. "Real Madrid wanted €18 million - a figure that given his age and salary demands made a deal frankly unthinkable."
While Madrid's asking price may have been steep for a 30-year-old who has had multiple injury problems, €18m would still represent a massive loss on the €68m that los Blancos paid for the Brazil international in 2009.
The Rossoneri may have missed out on Kaka, but they signed Mario Balotelli from Manchester City for an estimated €19m in an attempt to give them more attacking options as they attempt to challenge for a Champions League place.