• Milan president says Brazilian 'was too hard-headed' • 'The new manager? The discussions are ongoing'

Leonardo's tenure as Milan manager is to end after just one season in charge at San Siro. The club president, Silvio Berlusconi, today confirmed that the Brazilian will be leaving the Rossoneri.

"Yes, he is going," Berlusconi is quoted as saying by Corriere dello Sport. "The new manager? The discussions are ongoing. Leonardo was too hard-headed, the team has played badly."

Leonardo, appointed after Carlo Ancelotti left Milan for Chelsea last summer, has guided the side to third in Serie A, though they trail the leaders, Internazionale, by nine points and were beaten by Manchester United in the first knockout round of the Champions League.

There have been reports in Italy that the former Milan player had been keen to spend more time with his family in Brazil and he has even been linked with the role of national team manager should Dunga leave after the World Cup. Mauro Tassotti, currently Leonardo's assistant, and Filippo Galli, head of the Milan youth team, are among the favourites to replace the Brazilian.

There was some confusion this afternoon, however, as the Milan vice-president Adriano Galliani refused to believe that such words had come from Berlusconi. The Italian prime minister was reported to have made his comments to a group of senators, and Galliani insisted that he must have been misquoted.

"It is impossible that Berlusconi said these things," Galliani told the Italian TV station Sky Sport 24. "Leonardo will be at Milan next season."

Berlusconi was also quoted offering his support to Milan's city rivals in their Champions League campaign. "Look, I always support Italian teams when they play abroad," said Berlusconi, after the Nerazzurri battled past Barcelona at the Camp Nou last night. "Inter were very good and it's hard to say that as a Milanista."