AC Milan CEO Marco Fassone said there are no negotiations for teenage midfielder Renato Sanches due to Bayern Munich's asking price, though they are willing to talk if the Bundesliga champions lower their demands.
Sanches has impressed during Bayern's International Champions Cup campaign but the 19-year-old Portugal international is expected to leave with Milan linked, having only made nine starts under head coach Carlo Ancelotti last season.
Milan are reportedly keen on an initial two-year loan deal with the option to buy for EUR40million in 2019 but Fassone revealed the Italians are being priced out of a move.
"At this moment there are no negotiations," Fassone told Sky Sport Italia.
"Our rapport with [Bayern CEO Karl-Heinz] Rummenigge is very good. We've discussed the situation a couple of times, but at this moment they have a valuation of the player that we are not prepared to match.
"If the situation changes in August, then we are here."
It has been a revolution at Milan during the off-season, with the club's new Chinese owners ruthlessly overhauling the squad.
Leonardo Bonucci, Lucas Biglia, Andre Silva, Hakan Calhanoglu, Ricardo Rodriguez, Mateo Musacchio, Andrea Conti, Franck Kessie and Fabio Borini have arrived.
Andrea Belotti and Pierre-Emerick Aubameyang have also been linked as Carlos Bacca reportedly heads for the exit door.
However, Fassone denied Bacca is close to joining French side Marseille, despite being left out of Milan's squad for Thursday's Europa League qualifier against CSU Craiova.
"For the moment there are no offers," he said. "Those who have less space this season could ask to leave and we'll evaluate that."