The San Siro outfit have seemingly pulled out of negotiations for the unsettled striker despite being close to an understanding with City regarding the transfer
The Serie A champions had promised to unveil the name of its new striker at 19.00CET on Friday and remained hopeful until the last minute that a deal for Tevez was possible.
"We were very close to an agreement with City," Galliani told Milan Channel. "If at 18.30 someone asked me who would join, I would have said Tevez. In any case, our relations with City are good now and we have solved some misunderstandings.
"I did everything possible, I had my heart in my mouth today, I could not have done more. We had everything set for Tevez to come, but the situation changed. I would like to thank him for waiting until Friday evening, as promised. We will talk with City again in June."
Instead of Tevez, Milan signed Catania's Maxi Lopez, whose move had been in limbo for over a month as he waited for the San Siro outfit to make a decision.
"I had given my word to Catania and Maxi," Galliani added. "He is a strong player and he is ready."
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