A voluntary agreement put forward by AC Milan to restructure the club's financing has been rejected by UEFA.
A voluntary agreement put forward by AC Milan to restructure the club's financing has been rejected by UEFA, meaning the Rossoneri will continue to be monitored over Financial Fair Play (FFP) regulations.
Milan spent over £210m to bring in a number of high profile signings during the summer transfer window, including Andre Silva, Leonardo Bonucci and Ricardo Rodriguez.
There is also concern over the whether or not the club will be to repay loans to an American hedge fund, meaning the club is now being monitored by UEFA's Fair Play and Social Responsibility Committee.
NEW: AC Milan has failed to reach a voluntary agreement with UEFA over Financial Fair Play investigation— Rob Harris (@RobHarris) December 15, 2017
As reported by Sky Sports, Hedge fund Elliott Management is thought to have loaned £157m to the club's Chinese owners, as well as £107m to the club itself.
It has been reported that all those loans, combined with £43.6m of interest, must be repaid by October 2018. If these loans are not repaid, it has been suggested that the Rossoneri could be excluded from future European competitions should they qualify.
A statement from UEFA quoted in the report read: "The Investigatory Chamber of the independent UEFA Club Financial Control Body has reviewed the application for a voluntary agreement made by AC Milan as part of the FFP regulations.
"After careful examination of all the documentation and explanations provided, the Chamber decided not to conclude a voluntary agreement with Milan.
"In particular, the Chamber considered that, as of today, there are still uncertainties in relation to the refinancing of the loans to be paid back in October 2018 and the financial guarantees provided by the main shareholder.
"Milan will continue to be subject to the ongoing monitoring process and the situation will be assessed again in the first months of 2018."
Milan, who recently appointed club legend Gennaro Gattuso as manager, are currently seventh in Serie A and have reached the last 32 of this season's Europa League where they will face Bulgarian side Ludogorets.