Former Manchester United manager Ruben Amorim has been appointed as head coach of Italian giants AC Milan.

The 41-year-old has signed a two-year contract to replace Massimiliano Allegri, who was sacked after a catastrophic run of form at the end of the season, which led to the club missing out on Champions League qualification.

Reports in Italy claim Amorim will forego the year's pay he was still owed by Manchester United following his dismissal in January.

Milan say Amorim, external brings a "modern dominant tactical approach".

"There are ambitions that stay with you throughout your career, and coaching AC Milan has always been one of mine," said the Portuguese head coach.

"I know exactly what this club means: history, prestige and an extraordinary fanbase around the world. It is a challenge I embrace with pride and enthusiasm."

In February, United said Amorim's exit, together with his coaching staff, could cost the club up to £15.9m.

It is not known whether United will have to outline the savings in their next set of financial results, which are due out in the autumn.

Amorim was axed after a torrid 14 months at Old Trafford.

Prior to that, he had become one of Europe's most sought-after young coaches because of his work at Sporting, where he ended the club's 19-year wait for a league title in 2020-21, and then won it again in 2023-24.

Amorim replaced Erik ten Hag at Old Trafford in November 2024 after the club rejected his request to take over at the end of the season.

Last month, sources close to Amorim distanced him from the impending vacancy at his former club, Benfica, as it became apparent that Jose Mourinho was about to leave for Real Madrid. Former Fulham boss Marco Silva has since been appointed.

Amorim's first game in charge will be a pre-season match at Celtic on 25 July, while ironically, they conclude their pre-season campaign against Manchester United in Wroclaw on 15 August.