The Japan international had looked set to join the Rossoneri, with the Italian club recently suggesting the transfer had been delayed only because CSKA president Yevgeni Giner was away on holiday.
However, Honda now appears unlikely to complete a move to San Siro after Galliani revealed that negotiations with CSKA have come to a standstill.
"I called the president of CSKA and he said no to selling Honda," revealed Galliani.
"So we are as we were. There are not a lot of gifts out there."
Although Galliani remains pessimistic over incoming transfers, he is insistent that M'Baye Niang - who has reportedly attracted the interest of Genoa and Newcastle United - will be staying at the club.
"Niang will be staying with us, that is for certain," he added.
Milan have already brought in seven players in the close-season, with midfielder Andrea Poli joining from Sampdoria, and centre-back Cristian Zapata moving permanently from Villarreal following a loan spell last season.