Mbia became a free agent this summer when his contract at Loftus Road wasn't extended and the defensive midfielder became a possible transfer objective for Milan.
The Italian giants are trying to operate on a low budget in the summer transfer market having missed out on qualification for Europe last season.
However, it seems that Mbia may not be suitable for Milan's tight purse strings.
The Turin-based newspaper claims that Milan have communicated to Mbia's representatives that they are no longer interested in the player's services.
Milan will reportedly turn to Napoli's Blerim Dzemaili but they are also said to be dreaming of Paris Saint Germain man Adrien Rabiot.
Like Dzemaili, Rabiot's contract expires in the summer of 2015 and the Diavolo may hope to use that as leverage in a deal.