Reports in Italian newspaper Corriere della Sera claimed on Tuesday that the Manchester City owners had demonstrated an interest in buying a share of Milan, with the report suggesting an offer of €500 million (£441m) could be in the offing.
However, Milan, owned by Italian prime minister Silvio Berlusconi, have dismissed the report outright, insisting that negotiations have not taken place.
A statement said: "In relation to what has been published this morning in Corriere della Sera about a possible sale of part of the club, (holding company) Fininvest and AC Milan announce that the news is without foundation."
A Fininvest statement said: "Fininvest Spa, which controls AC Milan, denies in the most categorical manner press speculation concerning possible changes to the football club's assets. This is a journalistic hypothesis without any basis."
Milan and City hit the headlines during the winter transfer window when the latter launched a reported £100million bid for Brazilian star Kaka.
But talks over a world-record transfer broke down as Kaka opted to remain at San Siro.