The Rossoneri were in negotiations with Los Blancos over the Brazilian's return to the club, but the club's chief announced that financial problems have put an end to the deal.
The Brazilian confirmed last week that he would be willing to take a pay cut to move back to San Siro, having left the Rossoneri for the Spanish capital in 2009. Galliani soon confirmed that the club had entered talks with the Spanish champion over a move for the player, but he has now said that financial problems have put an end to the deal.
"The negotiations for Kaka have broken down," Galliani told reporters Monday. "It's not possible to complete the deal for fiscal reasons. We had agreed on everything else, but the deal broke down about an hour ago."
It is understood that the potential move collapsed because Milan failed to persuade the Santiago Bernabeu outfit to consider a loan deal for Kaka's services. The 30-year-old has found form and first-team opportunities hard to come by at Madrid, and has only made seven Liga appearances this season, scoring in none of them.
Kaka's first spell at the San Siro was between 2003 and 2009. During his time there, he won one Scudetto and one UEFA Champions League title, and he was named FIFA World Player of the Year in 2007.
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