Milan will have to go back to the drawing board after missing out on their main transfer targets Geoffrey Kondogbia and Jackson Martinez.

The Rossoneri were keen to strengthen their midfield line by signing French midfielder Kondogbia from Monaco this summer but city rivals Inter have beaten them to the signature of the 22-year-old.

Kondogbia has agreed terms with Inter and underwent a medical on Monday before completing his reported 40 million euros move to the Nerazzurri club.

“We had the deal done on Saturday,” Milan vice-president Adriano Galliani said to La Gazzetta dello Sport.

“Monaco had given us the all-clear for the sale at 40 million euros.

“The agreement with Geoffrey had already been sorted out the night before and was confirmed that same morning by him and his father.

“After we exchanged the documentation, at 1.30pm everyone disappeared.

“Evidently they changed their minds or the others offered more.”

Milan are also set to lose out on the signing of FC Porto highly-rated forward Martinez.

The Colombia international, who is currently on international duty at the Copa America, has been linked with a move away from the Estadio do Dragao this summer.

Milan began negotiations with FC Porto earlier this month to acquire the 28-year-old, who is also a reported target of Premier League clubs Arsenal and Liverpool.

However, the South American star is widely reported to be set to move to Atletico Madrid, who have sold Croatian forward Mario Mandzukic to Juventus for a reported €25 million.

According to reports in Spain, Atletico have agreed with Porto to pay Martinez’s buy-out clause set at €35 million to land the player.

A frustrated Galliani preferred to focus on the positives.

He said: “If we save 40 million euros on Kondogbia and 35 million euros on Jackson Martinez, we will have 75 million euros available to spend wisely from here until the end of the transfer market.

“Only time will tell if this is good or bad for the team.”

Milan are looking to strengthen their squad after two disappointing campaigns.

The Rossoneri finished 10th in Serie A this season and will miss out again on European football after finishing eighth the previous year.

As a result, Milan sacked coach Filippo Inzaghi and appointed ex-Sampdoria tactician Sinisa Mihajlovic as his replacement.