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AC Milan's Brazilian coach Leonardo gestures during their Serie A match away to Palermo at Barbera Stadium on April 24. Leonardo waved away questions about his future after his side lost for the seventh time in Serie A this season on Saturday, going down 3-1 at Palermo.

Saturday's defeat meant that Milan are mathematically out of the title race.

Even though they are nine points behind leaders Inter Milan with three games left, ahead of AS Roma's clash with Sampdoria on Sunday night, due to their inferior head-to-head record they cannot now finish above their neighbours.

It means that the seven-time European champions cannot now save a disappointing season in which they were crushed 7-2 on aggregate by Manchester United in the Champions League second round and lost to Udinese in the Coppa Italia quarter-finals.

All that is left for them is to hold on to third place in the league.

Leonardo has one year left on his contract with the 'rossoneri' but speculation in the Italian press is rife that the Brazilian will be shown the door in the summer.

"I don't want to talk about that, let's talk instead about the game," was all that he offered on the subject.

Milan fell behind after just nine minutes when Cesare Bovo was left unmarked at the back post to tap home a corner from three yards.

Palermo's second came on 18 minutes after a mistake by Massimo Oddo, whose clearance was charged down by Abel Hernandez, the Uruguayan going on to finish crisply with his left foot.

Clarence Seedorf pulled a goal back on 55 minutes after a clever pass from Ronaldinho but a Fabrizio Miccoli special midway through the second period sealed the points.

It leaves Milan looking somewhat lonely in third place, seven points below the team above and six ahead of the one below.

But more of a worry to Leonardo was his team's performance.

"For sure we did not have the right attitude at the beginning of the match, we were too soft and conceded goals we could have avoided," he said.

"In the second half we got a foothold in the game but Palermo's third goal killed it.

"We need to stay closer together and close up the spaces, we made some terrible mistakes.

"But I'm not afraid, I've seen the players' reactions but maybe this was the worst game since we found our style of play."

Milan were also short of a number of players due to injuries and suspensions but Leonardo says things will be better next time out against Fiorentina.

"Against Fiorentina we'll have many players back. Palermo didn't surprise me, they always win at home.

"I just want us to finish the season well."