Robinho's move from AC Milan to Santos has stalled after the two clubs failed to agree a transfer fee.
The former Manchester City forward is widely expected to leave the San Siro this month after expressing a desire to return to his homeland.
His former club Santos have held a long-standing interest in the 28-year-old and Milan vice president Adriano Galliani flew out to Brazil this week to discuss a deal with the club.
However, reports in the Italian media suggest those talks have reached deadlock, with Santos only prepared to offer €7million (£5.7million) - still €3million (£2.44million) short of Milan's valuation.
Galliani now looks set to return to Italy, casting doubt on whether any move can be completed before the end of the January transfer window.
Speaking at a press conference, Milan boss Massimiliano Allegri confirmed that Robinho may now stay in Italy until at least the summer.
"For what I know Robinho will be an AC Milan player until the end of the season," said Allegri.
"I'm glad he stays, but he hasn't trained for 20 days so it will take a little time to put him back into shape.
"He is happy to stay, even though he had a desire to return to Brazil."
Robinho moved to distance himself from any blame for the transfer stalling, insisting he is prepared to take a pay-cut in order to force through a deal.
"We have not done anything," Robinho told globoesporte.com. "I would also reduce my wages to return to Santos.
"But the agreement with AC Milan was difficult."