MILAN - AC Milan owner Li Yonghong has dismissed reports that he has been declared bankrupt in China as "fake news".

Chinese businessman Li - who purchased the Italian club for $911 million in April 2017 - was responding to reports that he has been ordered to auction off his assets to repay loans from two banks.

Italian daily Corriere della Sera reported on Tuesday that the 48-year-old entrepreneur was already insolvent when he purchased the club from Italian media tycoon and former prime minister Silvio Berlusconi.

"I have seen that over the past 48 hours some media have irresponsibly reported fake news that has damaged the club, my companies, my family and myself," Li said in a statement on AC Milan's website.

"We do not understand the purpose of these allegations, but they have now reached the point where the club is severely damaged by them and so are my companies and my family.

"I therefore want to take the opportunity to explain - hoping this will be the last time - that the situation concerning my assets is safe and sound and that both the club and my companies are steadily working."

Seven-time European champion Milan struggled early this season despite Li bankrolling a massive $300 million summer spending spree.

Vincenzo Montella was fired as manager in November and replaced by Milan youth coach and former midfielder Gennaro "Rino" Gattuso.

Milan is now seventh in Serie A - 25 points behind leader Napoli and just off the first Europa League spot.

"We all keep supporting coach Rino Gattuso. We will do everything we can to bring the club back to the top," Li said.

"We are convinced we can reach new heights and reward all the AC Milan fans throughout the world."

Paletta headed to CSL

Former Liverpool defender Gabriel Paletta is set to sign a two-year contract with Chinese Super League club Jiangsu Suning, it was reported in Italy on Wednesday.

The 32-year-old Argentinaborn Italy international is a free agent after terminating his contract with AC Milan by mutual consent last month.

Paletta visited the Milan training ground in midweek to bid farewell to his former teammates before heading to China to complete the move, Corriere dello Sport reported. Paletta - capped three times by Italy - spent the 2006-07 season with Liverpool but made just three Premier League appearances.

Jiangsu Suning is coached by Italian Fabio Capello.

Agence France - presse