AC Milan general manager and vice-president Adriano Galliani is adamant Kaka will not join Chelsea and has also warned the London side off making a bid for Alexandre Pato.
Reports in England suggested Chelsea had made a world-record offer for Kaka, claims later denied by the club, with the Brazil playmaker seemingly heading now for Real Madrid.
Milan owner Silvio Berlusconi said an announcement would be made about the player's future on Monday with Galliani adding that his options are to remain with the Rossoneri or go to the Bernabeu.
He told Italian newspaper Gazzetta dello Sport: "An agreement with Chelsea could not exist. Kaka goes to Real or he remains at Milan.
"That is his choice and we are doing everything in complete agreement. Negotiations (with Real) do exist, but an agreement is not done."