The now 28-year-old joined AC Milan from Empoli in the summer of 2019 but hasn’t played a competitive fixture for the Rossoneri since 2024.
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Unsuccessful loans to Marseille and Dinamo Zagreb over the past couple of seasons failed to secure a permanent move away for Bennacer.
The club confirmed that they had reached a mutual agreement to terminate the Algeria international’s contract in a brief statement.
“AC Milan can confirm the termination of Ismael Bennacer’s contract by mutual consent. The club would like to wish him all the best for the future,” they said.