The Dutchman was stunned to see his compatriot named as Massimiliano Allegri's successor despite his inexperience but has backed him to prove a success.
Former AC Milan star Ruud Gullit has admitted he is surprised the Italian giants opted to appoint Clarence Seedorf as their new head coach.
Seedorf, who spent 10 years at San Siro, confirmed on Tuesday that he will retire as a player in order to fill the role vacated by Massimiliano Allegri, who was sacked after the weekend defeat to Sassuolo.
Gullit was surprised with the club's decision to replace Allegri with the inexperienced 37-year-old but feels it could prove a shrewd appointment.
"I am very surprised at the choice made by the club," Gullit told RTL 4. "Clarence has no experience as a coach. In spite of this, however, I think the choice to appoint him will prove to be a good one in the near future."
Christian Panucci, meanwhile, is positive that Milan has made the correct decision as he believes Seedorf can lead the club to success.
"Seedorf? A friend, a smart guy and a professional. I think he has the credentials and personality to achieve great things," the former Itay defender told Sky Sports Italia. "Milan at this time cannot point to great things, but he can do well at the club and turn things around.
"It is the right decision to have composure and to opt for somebody you know when appointing someone to take charge."
Seedorf is likely to arrive in Milan on Wednesday and is set to attend the San Siro for the team's Coppa Italia quarter-final against Spezia.
The former Netherlands international is expected to sign a contract until 2016 and has already taken steps to appoint his backroom staff.