Pioli and the club have agreed to terminate his contract, avoiding an official sacking. He will leave at the end of the season.
Pioli, who had a year remaining on his contract, has accepted severance pay to leave early. This agreement allows him to sign with another club immediately.
The 2021-22 Serie A title-winning coach has been linked with Bologna, Napoli, and Atalanta.
Pioli will say goodbye to Milan fans during their final game of the season against Salernitana at San Siro on Saturday.
Hired in October 2019, Pioli won 132 of his 239 matches with Milan. He led the team to their first Serie A title in over a decade in the 2021-22 season and was named Serie A’s best coach that year.
The following season, he took Milan to the semi-finals of the UEFA Champions League before his departure at the end of the 2023-24 season.