Reports in Italy said Milan had agreed a deal with Mandzukic, who would arrive as a deputy for Zlatan Ibrahimovic.
However, MilanNews.it deny those stories and say the former Juventus star is not in Milan’s plans.
All of Milan’s transfer market objectives were achieved with the exception of a centre-back.
Milan have no plans to sign any free agents, but will invest again in January.
As for Mandzukic, his future remains unclear but it is only a matter of time before he finds a club.