The Argentine striker, who scored twice for his country as they beat Brazil 3-1 and qualify for next year's Worlds Cup, will have his wages paid for in full by Milan, but will still be registered as a Chelsea player.
Chelsea clearly failed in their attempt to get a big transfer offer from the Italian club and Milan must be rubbing their hands in glee at putting one over Chelsea.
Peter Kenyon has lost this particular battle and that will not have gone unnoticed in the office of Roman Abramovich.