Carlo Ancelotti has turned down the chance to return to AC Milan.
Ancelotti, 55, sacked by Real Madrid last week, held talks with Milan chief executive Adriano Galliani about a potential return to the club where he won two Champions Leagues.
Milan finished 10th in Serie A under current boss Filippo Inzaghi.
Ancelotti said: “Thanks to AC Milan for their interest. It was hard to say no to such a beloved club to me, but I need some rest. I wish them the best.”
Former Chelsea boss Ancelotti had recently indicated that he was considering taking a year’s sabbatical and having surgery on a back problem following his dismissal.
“I must have an operation because of spinal stenosis that for some time creates a tingle in my hands,” he was quoted as telling Il Giornale.
“I don’t know how long the period of recovery will be,” he added. “I can assure you that I’ve had plenty of offers from Italy, England, Germany. I’m sure they will not be lacking from here until next year.”
Ancelotti coached AC Milan from 2001 to 2009, winning the Italian league title in 2004 and two Champions League titles in 2003 and 2007.
He also twice won the old European Cup as a player with the club in 1989 and 1990.
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