Ancelotti intends to remain at San Siro

AC Milan have reiterated coach Carlo Ancelotti intends to remain at San Siro next season. Ancelotti has been strongly linked with a move to Chelsea this summer, when temporary manager Guus Hiddink is due to leave the post to return to his full-time job of Russia head coach.

And there was a rumour if Ancelotti might leave the Rossoneri, Cagliari current coach Massimiliano Allegri would take his place.

"Milan has never contacted any coach with Carlo Ancelotti at the club,” AC Milan vice president Adriano Galliani said. “Ancelotti is under contract with us through June 30, 2010.”

When asked about reports linking Allegri to AC Milan, Ancelotti answered: "He's very good. I wish him luck even if he has to wait a while to take my place".

"Galliani has spoken, I need not say more - referring to the fact that he is tied to the club by a contract valid until 2010."

Allegri has done a fine job in his first season coaching in Serie A, with Cagliari having secured their Serie A status and currently seventh in the standings.

According to "The Sun", Chelsea are ready to pay 1 million pounds to Carlo Ancelotti for every trophy that the coach wins with the Blues. And he would earn £ 5 million euros per season.