AC Milan and Inter have taken the first steps to replacing their San Siro stadium after filing an official proposal with local authorities, with the new build projected to cost more than €1.2 billion (US$1.35 billion), reports www.sportspromedia.com/.

The iconic 80,000 seat stadium has been shared by the two rival Serie A clubs for 71 years, but they have reached an agreement to knock it down and replace it with a new, state-of-the-art venue close to the current site, with a reduced capacity of 60,000.

In a joint statement, the two clubs said: 'AC Milan and Inter filed with the municipality of Milan the technical and economic feasibility study for the new Milan stadium and its multifunctional district.

'The proposal to the local institutions marks a first official step by the clubs, beginning a shared journey together with the municipality towards constructing a modern, sustainable and accessible urban district in the San Siro area, built around a new world-class stadium.

'The documentation submitted by the clubs consists of a detailed technical and engineering study which does not yet include an architectural component.'

Construction on the new stadium is apparently due for completion by 2023.