Cagliari have released Massimiliano Allegri from his contract.
Allegri is now set to sign with AC Milan.
He was sacked in April after he became 'distracted' amid speculation about his future. However, he remained on Cagliari's payroll.
A statement on Cagliari's website read: "Despite the bitterness and the disappointment left by the scarce involvement shown by the Coach Massimiliano Allegri at the end of the season, President Massimo Cellino has decided to free him following a request made by Milan.
"Cagliari have not asked for any financial compensation considering the impossibility of quantifying the value of feelings."
Earlier this month, Cellino appointed Cesena boss Pierpaolo Bisoli as Allegri's replacement.