AC Milan fired Sergio Conceicao as expected on Thursday following a disappointing season that saw the Rossoneri fail to qualify for Europe.
The seven-time European champion has reportedly reached an agreement with Massimiliano Allegri to return as coach.
Milan finished eighth in Serie A, 19 points behind Italian champion Napoli.
“The club would like to thank Sergio and his staff for their commitment, professionalism and dedication shown during their time leading the first team over the past few months,” Milan said in a statement.
Conceicao replaced the fired Paulo Fonseca in December with an 18-month contract and promptly guided Milan to the Italian Super Cup title in Saudi Arabia during his first matches in charge.
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But Milan was eliminated by Feyenoord in the Champions League playoffs in February then got beat by Bologna in the Italian Cup final this month.
Meanwhile, city rival Inter Milan will play Paris Saint-Germain in the Champions League final Saturday.
Allegri coached Milan to the Serie A title in 2011.