Italian media reports said Amorim has signed a two-year contract and will earn a net annual salary of 3.5 million euros ($4.06 million).

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

"I know exactly what this club means: history, prestige and an extraordinary fanbase around the world."

The Portuguese coach returns to management six months after leaving Manchester United, where he endured a difficult spell at Old Trafford.

Previously regarded as one of Europe's most promising young coaches following his success at Sporting Lisbon, Amorim will now be tasked with restoring Milan's fortunes after a disappointing season.

The Rossoneri missed out on Champions League qualification on the final day of the Serie A campaign, finishing fifth after a shock 2-1 home defeat to Cagliari.

That setback came amid growing supporter frustration with the club's ownership and triggered major changes behind the scenes.

Former coach Massimiliano Allegri, chief executive Giorgio Furlani and sporting directors Igli Tare and Geoffrey Moncada all departed following the disappointing finish.

Amorim's immediate objective will be to guide Milan back into Europe's premier club competition and challenge near the top of Serie A once again.

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