Georgia defender Kakha Kaladze has renewed his contract with UEFA Champions League runners-up AC Milan until 2010.

No Chelsea agreement
With Kaladze's previous deal due to expire in 2006, the 27-year-old seemed to be on the verge of joining Chelsea FC earlier this month but the two clubs failed to reach agreement over his transfer fee.

'Very happy'
"I am a bit disappointed with the way the negotiations with Chelsea went," Kaladze said. "However, I am a Milan player and certainly I cannot complain about my current situation. I did not play as much as I wanted last season but I am very happy with this new contract."

Champions League winner
Kaladze moved to Milan in 2001 when the Rossoneri paid €16m to sign him from Ukrainian side FC Dynamo Kyiv. With Milan, the former FC Dinamo Tbilisi left-back won the European Champion Clubs' Cup and Coppa Italia in 2002/03 and the Scudetto the following campaign. Last season he played 19 Serie A matches and five in the Champions League.