The leaders of the Rubro-Negro met with their Milanese counterparts on Monday to discuss a deal for the attacker, but the Italian side's demands are too great.
Rossoneri vice-president Adriano Galliani traveled to Rio de Janeiro on Monday to thrash out a sale of the 28-year-old - who is understood to be keen on a return to his homeland - but the Rubro-Negro's speculated proposal of 6 million euros was quickly dismissed.
A statement on Flamengo's official website read: "Flamengo directors Wallim Vasconcellos and Flavio Godinho met on Monday afternoon with Mr. Adriano Galliani in an attempt to bring Robinho to the club.
"However, because of the amount requested by Milan, the club believe it is appropriate to abandon the deal and step aside."
Reports in Brazil suggest league champion Fluminense is ready to step up its interest in the striker with the Copa Libertadores imminent, while Sao Paulo feesl the former Real Madrid man could plug the gap left by Paris Saint-Germain bound Lucas Moura.