AC Milan has appointed Portuguese Paulo Fonseca as its new head coach on a three-year contract, replacing Stefano Pioli, the Serie A club announced on Thursday.

Pioli left Milan after the 19-time Italian champions finished second last season, 19 points behind champions Inter Milan, and following lacklustre runs in the Champions League and the domestic cups.

Fonseca, 51, last managed French side Lille, and was also in charge of AS Roma from 2019-2021.

"AC Milan can confirm that Paulo Fonseca has been appointed as the head coach of the men's first team," the club said in a statement.