The San Siro outfit have struggled to make much of an impact in Serie A this season, currently sitting 10th in the Italian top flight.
And, despite qualifying for the last 16 of the UEFA Champions League, Galliani feels there is plenty of room for improvement among the youth ranks.
"The club wants to develop the youth sector and it also wants to do it away from the pitch," he is quoted as saying by Football Italia.
"Every team has a mentor, while their school progress is also monitored. We assure you Milan is always looking to strengthen the youth sector and we’re satisfied with the progress."
The club have produced some of Italy's finest internationals, and Galliani wants to see a return to those days.
"We want the youth sector to be what it was when President Silvio Berlusconi first arrived," he added.
"It has to be like the one in 1986 with Alessandro Costacurta, Filippo Galli, Paolo Maldini and Franco Baresi, that, along with Mauro Tassotti, won three European Cups together.
"We strengthened the side but there were already players ready from the youth sector.
"We've got two top players in Mattia De Sciglio and Alessandro Matri that come from our youth sector. They've made it to the top.
"Alessandro made his debut at Piacenza, he’s been around a few clubs in Italy and he’s back. Mattia is the model player for the club and the coach. He cost Milan just €1,000.
"Unfortunately some clubs abroad have greater economic resources at their disposal, which is why we must continue to strengthen our youth sector. This is the club's mission.
"We need to bring players right up until the first team; that is the youth sector I want."
‘After Manchester City’s recent form, maybe they’re the underdogs against Manchester United!’ Former Red Devils defender on this weekend’s derby
‘Arteta, Alonso, Emery, me… none of us were physical players – we needed the understanding of the game. That probably helped us move into management’: Premier League boss reveals reasons for natural career progression
