The Japan international has been a long-term target of Milan, as they aim to bolster their ranks and challenge for the Serie A title this season.
Milan have already brought in seven players in the close-season, with midfielder Andrea Poli joining from Sampdoria, and centre-back Cristian Zapata moving permanently from Villarreal following a loan spell last season.
However, Honda is not expected to join them at San Siro after Galliani revealed that negotiations with CSKA have come to a standstill.
"I called the president of CSKA and he said no to selling Honda," Galliani said.
"So we are as we were. There are not a lot of gifts out there."
Although Galliani is pessimistic over incoming transfers, he is insistent that M'Baye Niang - who has reportedly attracted the interest of Genoa and Newcastle United - will be staying at the club.
"Niang will be staying with us, that is for certain," he added.
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