Leonardo believes it would be "impossible" to accept a role at former club Milan.
The Brazilian has been out of work since he resigned as Paris Saint-Germain's sporting director in July, after he was handed a 13-month ban by the French Football Federation following an altercation with referee Alexandre Castro in the aftermath of the club's 1-1 draw with Valenciennes in May.
That ban was overturned in October, with the FFF launching an appeal to have that decision reconsidered, although the French football authorities recognise he is free to continue his career outside of France.
Leonardo has since been linked with a move back to Italy, after enjoying coaching spells with Milan and city rivals Inter.
But the 44-year-old does not envisage accepting a non-playing role at Milan, after ending his first stint amid a difficult relationship with owner Silvio Berlusconi.
Speaking to Gazzetta dello Sport, he said: "I do not think Milan wants me.
"After what has happened (with Berlusconi), it would be impossible to go back. He who uses fists forgets about it, but he who takes it does not."
When asked about a possible return to Inter in some capacity, Leonardo remained coy and believes it would depend upon Massimo Moratti's advice to new owner Erick Thohir.
He added: "I do not know if Thohir wants me. In any case, I have a close relationship with Moratti.
"(Moratti) knows everything about me, he knows my ideas. If Thohir called me, it would be based on the information that Moratti can give him."comments