The Italian champions will not move for the Argentine striker after Pato committed his future to the club, with Galliani remaining tight-lipped on the Man City man's next move
Galliani travelled to London on Thursday morning to conduct negotiations with City and it was believed that a deal was close at hand after the Serie A champions had struck an agreement with Tevez last week.
However, Alexandre Pato's refusal to move to Paris Saint-Germain in a reported €35 million deal has made Milan drop their interest in the Argentine outcast.
"Pato has decided to stay, so Tevez will not come," Galliani told Sky Sport Italia. "Those two deals were connected, if one player does not leave, then the other will not come.
"It is okay, I remember when [Gianluca] Vialli said no and we signed Marco van Basten.
"I am happy with Pato's statement, we hope that [Antonio] Cassano can be our signing."
However, Galliani then hinted that a deal could still happen if City lower their demands.
"Can we revive the Tevez deal at a lower price? You'd have to ask City. We'll see whether we will call Manchester City again."
Questioned if Milan would still try to sign another striker, Galliani said: "No. Our will attack will remain like this.
"It all began with Cassano's problem, if it was not for that, we would not have done anything."
The Milan official was then cryptic when asked if he wanted to see Tevez play for PSG or for Inter.
"I am not rooting for either club, I know what is happening, but I will keep it to myself," Galliani added. "I do not talk about Inter."