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AC Milan vice-president Adriano Galliani admits the Rosseneri can not compete financially with Manchester City for the signature of Ronaldinho.
New Barcelona coach Pep Guardiola revealed on Tuesday that he is prepared to offload Brazilian playmaker Ronaldinho over the summer.
Milan have been long-time admirers of the 28-year-old, while Premier League club City have confirmed their interest in the former Paris Saint Germain ace.
Chelsea have also been linked with a bid after Ronaldinho's compatriot Luiz Felipe Scolari was appointed manager and there have been reports that the player is wanted by Los Angeles Galaxy.
Barcelona have yet to accept any bids for Ronaldinho, but Milan vice-president Galliani concedes the Italian giants can not match the wages City are prepared to offer.
"For now Italian football is ranked fourth in Europe behind England, Spain and Germany," Galliani told the Gazzetta dello Sport.
"Unfortunately we can't compete with the wages they offer.
"It is the way our football is going unless we change things.
"We'd like to offer Ronaldinho from Barcelona a chance of playing for us.
"Manchester City, though, have offered the Brazilian 12million euros (£9.5million) a year. How can we compete?
"Well, only if they give him to us for free!"
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MANCHESTER CITY have wrecked AC Milan’s bid to sign Ronaldinho by offering him £30MILLION in wages. The Italians admitted defeat in the chase for the Barcelona star after the £180,000-a-week proposal.
AC vice president Adriano Galliani said: “We simply cannot compete with certain figures anymore. "I cannot ignore the fact Italian football is now in fourth position in Europe behind England, Spain and Germany.
“Manchester City have offered Ronaldinho £9.5m a year. “We can only compete with that if Barcelona give him away for free.”
On top of the massive three-year wage deal for Ronaldinho, City owner Thaksin Shinawatra will also have to stump up £20m to buy the Brazilian playmaker from Barca.
But the former Thai prime minister hopes much of his outlay will be recouped in commercial deals. In a year at the Eastlands helm, Shinawatra has spent £50m on players and sacked Sven Goran Eriksson — despite him getting the club into Europe.
New boss Mark Hughes has been told there is a lot of cash to spend this summer. City’s offer for Ronaldinho dwarfs the Premier League’s current biggest pay deals. England centre-backs Rio Ferdinand at Manchester United and Chelsea’s John Terry both pocket £130,000 a week.
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