"All the messages coming my way said to choose with my heart and at the end that's what the choice was. It was absolutely not economical," Kaka told Milan Channel late Monday after Italian Premier and AC Milan president Silvio Berlusconi broke the news that Kaka was staying.

"Kaka is staying with Milan," Berlusconi told a TV show. "For Kaka, money isn't everything ... Kaka is and remains with Milan."

Shortly after Berlusconi's comments, City issued a statement confirming it had ended negotiations with the Italian club over the transfer.

"Following a meeting in Milan today, the club felt that it was unlikely that the two parties could reach common ground for an agreement," City said. "The discussions reached only a preliminary stage and the player was not involved at any time. No commercial terms were framed."

The news came following a full day of meetings between Milan, City and Kaka's father and chief adviser - Bosco Leite - to discuss a bid that was said to be 100 million pounds.

"There has been a lot of news, rumors and speculation over these last few days that put my father in a bad light. It's not like that," Kaka said. "I never argued with my father. My decisions are always made with my family. My wife was great, she helped me and always supported me in all my decisions.

"My family was great and not at any moment did they push me to go one way or another. At the end what counted was my history, where my ties are and where my heart really lies."

Upon hearing the news, fans holding vigil outside Kaka's downtown home celebrated as if the Brazilian had scored a goal. They began chanting and Kaka poked his head out a window and made a celebratory gesture himself, applauded, and threw a Milan jersey down toward the crowd.

Berlusconi added in a phone interview with the "Processo di Biscardi" show that he had tried to persuade the player to stay.

"It was my intervention but also his," Berlusconi said. "When I heard he preferred to stay, that he hadn't thought about losing a chance for a higher salary and that he put the values of the club, friendship and fans affection above all else, I said, 'Come on,' and we hugged.

"He has taken himself off the market with this decision to remain tied to the contract he has with Milan," Berlusconi added in another interview, with Sky Italia TV. "A contract signed on a piece of paper but from now on we can pretty much call it signed with sentiment, signed with the heart.

"Kaka is a great champion and a great man. He turned down the offers from Manchester and preferred Milan, his teammates and his fans. He said no because money isn't everything in life... Money is important but there are also other things that are more important. As a fan I'm very happy. Kaka turned down a ton of money and it's a decision worth admiring."

Earlier, a group of about 500 fans protested outside Milan's downtown offices, chanting "Don't sell Kaka." A few flares were lit, but no problems were reported.

Some fans then moved toward Kaka's home and chanted, "Stay with us, Ricardo," to which Kaka replied by approaching a window with a Milan jersey in hand and beat his hand three times on his heart, sending the fans into delirium, the ANSA news agency and Gazzetta dello Sport Web site reported.

"Heart has prevailed on the matter," Milan vice president Adriano Galliani told Milan Channel. "The fans should thank president Berlusconi again for his economic input ... It was a strong temptation, with such astronomical and world record figures."

There had been speculation that Kaka's camp will ask for a revision of his contract with Milan if he decided to stay, although he is already the highest paid player for the Rossoneri at 9 million (US$12 million) per season, and Milan does not appear inclined to accept such a request.

Milan's other Brazil stars earn much less - Ronaldinho 4 million (US$5.3 million) and Alexandre Pato 2 million (US$2.7 million) - and Milan fears that if it restructures Kaka's contract, other players will want to follow suit.

The 26-year-old Kaka is under contract with Milan through 2013.