A central midfielder by trade, Krunic racked up 33 appearances in Serie A during the 2018-19 season, netting five goals and providing a further six assists in the process to earn his move.
Announcing the acquisition on Monday, a statement on the Rossoneri's official website reads: “AC Milan announces that it has acquired outright midfielder Rade Krunic from Empoli.
“The Bosnian has signed a contract that will bind him to the Rossoneri for the next five years. Born in Foca on 7 October 1993, Krunic grew up with a football team in his city, Sutjeska Foca, with whom he amassed 15 appearances and three goals in his debut season among professionals.
“In 2013 he moved to Serbia, joining the ranks of Donji Srem before moving to Borac Cacak the following year. In the 2015-16 season he moved to Empoli, playing four seasons in Tuscany – three in Serie A and one in Serie B for a total of 119 appearances and 12 goals to his credit.
“He boasts 10 appearances and one goal in the shirt of the Bosnian national team. From today, Krunic joins the Rossoneri family.”
Krunic becomes Milan's second notable signing of the summer, having snapped up full-back Theo Hernandez from Real Madrid for a fee of €20m (£18m/$22.5m) as the Spanish capital side's selling spree continues.
Goalkeeper Gianluigi Donnarumma, however, continues to be linked with a move away from San Siro, with Paris Saint-Germain reportedly interested in a deal for the 20-year-old Italy international following Gianluigi Buffon's return to Juventus.
But technical director Paolo Maldini has moved to dismiss any suggestions that Milan would sell their much-coveted shot-stopping starlet.
“The idea we have right now is to keep Donnarumma for a very long time,” he told reporters. “At the moment, that is our position.”
Whether the young 'keeper stays on past the summer remains to be seen, however, with Milan having been banned from European competition for the upcoming season.