The former Rossoneri midfielder, who is now the general secretary of the Milan Foundation, confirmed the club will be reluctant to let the 25-year-old travel to Beijing if he is selected as one of his country's over-age players.
Leonardo told Brazilian TV station O Globo: "The competition comes at a time when teams face the preliminary round of the Champions League, which represents a major percentage of the club's finances.
"If Kaka is named to play the Olympics, he would not be able to play two very important games for Milan if we finish the current Serie A season in third or fourth place."
Despite this, Leonardo believes the relationships between FIFA - whose regulations would not not compel Milan to release the player for the tournament - UEFA and the relevant football associations can help resolve the situation.
"(Sepp) Blatter's management at FIFA and (Michel) Platini's at UEFA are very good and Ricardo Teixeira is a powerful man as the president of the Brazilian Football Confederation.
"Nowadays, there is a level of communication that did not exist in the past.
"It has nothing to do with saying, 'Milan do or do not release a player'.
"There are regulations we follow to release players or not. The Olympic Games are not organised by FIFA but by the Olympic Committees."
Leonardo told Brazilian TV station O Globo: "The competition comes at a time when teams face the preliminary round of the Champions League, which represents a major percentage of the club's finances.
"If Kaka is named to play the Olympics, he would not be able to play two very important games for Milan if we finish the current Serie A season in third or fourth place."
Despite this, Leonardo believes the relationships between FIFA - whose regulations would not not compel Milan to release the player for the tournament - UEFA and the relevant football associations can help resolve the situation.
"(Sepp) Blatter's management at FIFA and (Michel) Platini's at UEFA are very good and Ricardo Teixeira is a powerful man as the president of the Brazilian Football Confederation.
"Nowadays, there is a level of communication that did not exist in the past.
"It has nothing to do with saying, 'Milan do or do not release a player'.
"There are regulations we follow to release players or not. The Olympic Games are not organised by FIFA but by the Olympic Committees."
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