Milan have announced that Leonardo has stepped down from his role as sporting director.

A statement on Milan’s official website thanked Leonardo for his ‘important contributions in helping to take the club forward’ and noted his successor would be appointed ‘in due course’.

“Leonardo joined AC Milan in its hour of need a few short weeks before the closing of the summer transfer window,” said CEO Ivan Gazidis.

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Gennaro Gattuso has arrived at Milan’s offices to waive the remainder of his contract – worth almost €11m gross.

MilanNews.it spotted Gattuso checking into Casa Milan with his assistant Gigi Riccio on Tuesday afternoon.

The website explains it is there that he will reach a consensual resolution with the Rossoneri over his contract.

Sky Sport Italia adds the remaining two years on the Coach’s contract amounts to ‘almost €11m gross’.

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Milan Coach Gennaro Gattuso and director of sport Leonardo will quit today because CEO Ivan Gazidis is downsizing their ambitions, it’s reported.

There was a meeting between Gazidis and Gattuso on Monday evening in which they came to the mutual decision it was best to part ways this summer.

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Coach Gennaro Gattuso and director Leonardo will announce their departures from Milan on Tuesday, claim Sky Sport Italia.

The decision comes after a meeting between CEO Ivan Gazidis and Gattuso this evening.

According to the reports, they part on friendly terms and will terminate the contract by mutual consent with another two years left to run.

It's suggested Gattuso will give up on 90 per cent of the salary he'd be owed for the rest of his contract.

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Gazzetta dello Sport is reporting Leonardo will leave Milan on Monday and could return to Paris Saint-Germain.

The newspaper explains Leonardo’s position has ‘weakened’ at Milan after their failure to qualify for the Champions League, while his silence contradicts the club’s stance that there are no problems between him and CEO Ivan Gazidis.

The Brazilian was only appointed sporting director at San Siro last summer, as part of a new-look boardroom following Elliott Management’s takeover.

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Milan could replace Paolo Maldini and Leonardo, it’s reported, bringing in Lille director Luis Campos and Monaco Coach Leonardo Jardim.

According to La Gazzetta dello Sport, the Rossoneri are not fully convinced of the work being done by their former defender and chief executive Ivan Gazidis is thinking about going in a different direction by bringing in current Lille sporting director Campos.

Maldini only returned to working with his former club this season after he retired from the game in 2009.

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The Brazilian FA has reportedly offered the role of national-team coordinator to Milan’s Leonardo.

According to Gazzetta dello Sport’s Nicolo Schira, it comes as current coordinator Edu will join Arsenal after Copa America, which gets under way next month.

Schira explains that while Leonardo’s preference is to stay at Milan, he presently does not enjoy the club’s confidence or full power over team matters.

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Several sources claim Milan director Leonardo is among several figures who will be replaced this summer by CEO Ivan Gazidis.

The Rossoneri are struggling to snatch fourth place from Atalanta, with reports in the Corriere dello Sport that they could even take a plea bargain with UEFA over Financial Fair Play violations, accepting a season out of continental competition if they only qualify for the Europa League.

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Milan could end up keeping Coach Gennaro Gattuso, claims the Corriere della Sera newspaper, but replacing Leonardo next season.

The Rossoneri are still in contention for the fourth and final Champions League spot, sitting three points behind Atalanta, but with a superior head-to-head record.

Gattuso has seemingly been hanging on by a thread for months, expecting the sack even if he grabbed fourth place, and yet the Corriere della Sera paints a different picture now.

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Milan CEO Ivan Gazidis has reportedly vetoed his club’s pursuit of Gremio winger Everton Soares.

Milan sporting director Leonardo appeared to be closing in on a deal for Everton, but Sport Mediaset claims Gazidis has ‘blocked everything’.

The broadcaster speculates that is due to spiralling costs as business with Brazilian clubs is ‘always complicated’.

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