(CNN) -- AC Milan coach Carlo Ancelotti has reiterated his desire to remain at the club next season despite persistent rumors linking him with a move to Chelsea this summer.
Ancelotti continues to be linked with Chelsea after a difficult season with AC Milan.
The Italian giants have endured a difficult season and will finish the campaign without a trophy for the second year running.
"If things were not to work between me and Milan as they have done in the past years, I think it would be fair for the two parties to embrace, say goodbye and remember with affection these past eight years," Ancelotti told PA Sport.
"But I don't think that time has come because the harmony between us is complete, even though the season has certainly not been a positive one."
Milan, who missed out on the Champions League after a fifth-place finish last term, were knocked out of the UEFA Cup by Werder Bremen at the last 32 stage.
The Rossoneri were also eliminated early on in the Coppa Italia and are 14 points behind Serie A leaders Inter Milan with nine games remaining.
"It's logical that if Milan have had a drop in form and that the team needs to be renewed, we need to evaluate this situation together," Ancelotti continued.
"Not many clubs can afford to make huge investments at this time, considering that Italian teams suffer more than other teams in other nations like Spain or England (because of taxation). But this is an issue that can be tackled together and we can find a solution together."
Ancelotti, who is under contract with Milan until 2010, is the longest-serving manager in Italy's top flight, having joined the club in 2001.
It was announced on Tuesday that AC Milan will play a four-team pre-season tournament in July in New York alongside Inter Milan, Chelsea and Mexico's Club America.