AC Milan manager Carlo Ancelotti has denied he is in talks with Chelsea over succeeding Avram Grant at Stamford Bridge and the London club has also refuted reports to the contrary this evening.

Ancelotti was strongly linked with the Stamford Bridge post this afternoon amid suggestions his advisors have reached a settlement with the Blues over a move to England.

But both Chelsea and the Italian Milan insist no such move is imminent.

"I'm staying at AC Milan for sure, and for many seasons to come," the Italian said this evening. "I've not spoken to anyone at Chelsea - any other reports are football talk and pure speculation."

A Chelsea statement released moments earlier was equally unequivocal.
 
"Contrary to reports Chelsea Football Club has not reached agreement with any individual to become manager, nor have we sought permission from any organisation to talk to their manager," it read.
 
"We are extremely happy how our search is progressing."

Milan vice-president Adriano Galliani has also denied Ancelotti met Chelsea owner Roman Abramovich during a visit to Paris on Monday.

The Rossoneri boss was reported to have met the Russian at the Four Seasons hotel in the French capital to discuss terms to take over at Stamford Bridge, but Galliani has been assured by Ancelotti the reports are incorrect.

"I have spoken to Ancelotti and can confirm that he was in Paris on Monday, but not to meet Abramovich," Galliani said. "That is something he has denied expressively. He was in Paris on his own business.

"Ancelotti is coach of Milan and will continue to be so."

Rumours resurfaced today after it was confirmed by Blackburn Rovers that they had agreed a compensation package with Manchester City for their manager Mark Hughes, who was believed to be a strong candidate for the Chelsea position.