There had been speculation the 33-year-old midfielder would move to Stamford Bridge to link up with his former Rossoneri coach Carlo Ancelotti, who was confirmed as manager on June 1.
However, the Dutchman is not interested in moving to the Premier League.
He said: "It's beautiful news, that Ancelotti wants me in London, but next year I will still be playing for Milan.
"I have a contract with Milan and I am a player of Milan. Here I am well.
"I hope to still play for at least three or four years more. After that I have a whole lifetime ahead of me to do good."
Seedorf played for six and a half years under Ancelotti at Milan.
Together they won two Champions League titles, the Club World Cup, two European Super Cups, the Coppa Italia and the Italian Supercoppa.