Sky Sports News sources understand that the world record bid has been tabled in an attempt to bring the gifted Brazil international to Stamford Bridge.
The package is reported to include wages of £10million a year after tax, even more than Manchester City were prepared to offer during their failed swoop during the winter transfer window.
Carlo Ancelotti's appointment as Chelsea manager on Monday has only served to heighten suggestions that he could be prepared to raid his former club as aims to bring the UEFA Champions League trophy to the club.
But the Blues have moved to quash the fervent speculation that they were prepared to break the bank to ensure one of the finest players on the planet could be on his way to West London in the coming days.
Totally untrueA statement on the club's official website read: "We have never made an offer to AC Milan for Kaka and therefore not one at this extraordinary level.
"As a consequence we have not discussed a salary with the player wither. Any reports to the contrary are totally untrue."
Kaka's future has been thrown into doubt despite continued claims from the player that he is happy with the Rossoneri and is not looking to move on.
Real Madrid were reported to have tabled a £56million bid for the gifted playmaker following Florentino Perez's return as president at Santiago Bernabeu.
TalkMilan owner Silvio Berlusconi has now admitted that he will hold talks with Kaka, who is currently on international duty, over his future at the start of next week.
"I will talk with Kaka next Monday and on Monday I will be able to reveal the decision," he told Italian TV. "It is early to think about what happens next."
Berlusconi claims he will leave the final decision to Kaka, and compared the situation to the sale of Ukraine striker Andriy Shevchenko to Chelsea in 2006.
"I can only say that we were very attached to Sheva," he added. "When an offer arrived that we could not equal, because I had a great friendship with him, I did all I could to convince him but in the end I left it up to him.
"It is always our lads who must decide where they want to play. Now we will see."