The Dutchman was appointed head coach of the Italian giants in January as he replaced Massimiliano Allegri at San Siro. Despite coming close to securing one of Serie A's Europa League spots, the Dutchman was expected to be releived of his duties as he came under criticism from president Silvio Berlusconi and chief executive Adriano Galliani.
The club have now confirmed that they have parted ways with the former midfielder and have appointed Inzaghi as the new first-team coach after a successful spell at the helm of the Under 19 team.
Through a statement on their official website, Milan revealed that the former striker and club legend has been handed a two year deal.
"AC Milan communicates to have sacked coach Clarence Seedorf and have entrusted the first team, through June 30, 2016, to Filippo Inzaghi," the statement read.