Media reports claimed that Real were trying to offload both Baptista and Antonio Cassano on Milan, but Galliani denied the reports.
"If Real Madrid accept this offer for Baptista, good, otherwise it won't happen. I deny that Real have asked us to take Cassano too."
Galliani met Real sporting director Predrag Mijatovic earlier this week but said he told him that the subject of Brazilian star Kaka was off-limits.
"Predrag is aware that he can no longer ask me about Kaka. The boy will stay with us for the next four years," he said.
Kaka may soon be joined by another Brazilian after Galliani sent an official to South America to try to secure a deal with Alexandre Pato, who shone for Brazil at the recent Under-20 World Cup in Canada.
Rivals Inter have also expressed an interest in the teenage forward.
"If we succeed with Pato then great, otherwise life goes on," added Galliani, who has been under pressure from fans after failing to add to Milan's squad so far in the close season.