The 33-year-old only joined the Nerazzurri during last summer's transfer window from Atletico Madrid, but only managed to score twice in his 18 league appearances last season.
Reports had emerged that he would be set to join the Rossoner, but his agent, Daniel Bolotnicoff, has moved to dismiss all rumours that Forlan would move across the city or to Turkish Super Lig giants Fenerbahce.
"Forlan to AC Milan? That is not an option for my client," he told Tuttomercatoweb. "It is not something we will think about. A move to Turkey? Not at the moment.
"We will see in the next few days what will happen with Diego."