AC Milan have given up their ambition of signing Wolfsburg striker Edin Dzeko because of his high price tag.

Dzeko has been the subject of keen interest by the Rossoneri who have been keeping tabs on him since the summer. They were reported to be interested in the 23-year-old as recently as January.

However, that interest seems to have waned after Wolfsburg upped his value to a massive €40 million, according to Tuttomercatoweb.com

In addition, Chelsea boss Carlo Ancelotti is also supposedly interested in signing the striker and Milan do not want to be caught in a bidding war with the Blues' billions.

Sources close to the player have revealed that his future will be sorted out by April and not in the summer as was earlier expected.