Man Utd to save MILLIONS in compensation costs when Ruben Amorim joins AC Milan - and will take on former manager in August

Manchester United’s balance sheet is about to look much healthier as the club prepares to slash the massive payout owed to former manager Amorim, as per Telegraph. The Red Devils had previously calculated a staggering cost of £16.7 million for dismissing the Portuguese coach and his backroom staff earlier this year. However, with Amorim now poised to return to work in Serie A, United will be spared a significant portion of those ongoing compensation payments.

The 41-year-old was relieved of his duties after just 14 months in charge, leaving behind a coaching ticket that included Carlos Fernandes, Adelio Candido, Emanuel Ferro, and Jorge Vital. The financial burden of these dismissals followed shortly after the club paid £14.5 million to move on from Erik ten Hag.

AC Milan have reportedly identified Amorim as their primary target to lead a tactical overhaul after a disappointing season under Massimiliano Allegri. After missing out on Champions League qualification, the Italian giants have held talks with the former Manchester United boss, moving him to the top of a shortlist that once featured the likes of Oliver Glasner and Mauricio Pochettino.

Amorim had previously been linked with the vacancy at Benfica following Jose Mourinho's move to Real Madrid, but the Portuguese side opted for Marco Silva instead. This has cleared the path for Milan to offer a provisional two-year contract, which includes the possibility of a third season. The move would represent a chance for Amorim to rebuild his reputation away from the intense scrutiny of the Premier League, where his controversial 3-4-2-1 system struggled to take root at Old Trafford.

Should the appointment be finalised, Amorim will not have to wait long to see some familiar faces. United have confirmed that they will face AC Milan in their final pre-season friendly on August 15. The clash is scheduled to take place in Wroclaw, Poland, just one week before the new Premier League campaign kicks off.

The friendly will provide a fascinating sub-plot to the summer, pitting United against the man who famously clashed with the club's leadership. Tensions during Amorim's final weeks reached a breaking point, specifically involving director of football Jason Wilcox. The manager reportedly blew up at Wilcox during a heated meeting shortly before his exit. Fans will now be watching closely to see if Amorim can find the tactical success in Italy that eluded him in England.

While Amorim prepares for his next chapter, United have experienced a dramatic turnaround under Michael Carrick. The former midfielder took the reins with the club sitting in seventh place and guided them to a third-place finish. This resurgence has provided a major boost to broadcast revenue, which increased by over 57 per cent in the most recent financial quarter. Despite the initial cost of sacking the old regime, the decision appears to have paid off on the pitch.

Chief executive Omar Berrada has expressed his delight with the current direction of the club, noting that the "business transformation initiatives" are beginning to bear fruit. With Champions League football secured and a lucrative new training kit deal in place, United are in a strong position to support Carrick in the transfer market. Meanwhile, the impending reduction in Amorim's severance package will provide even more flexibility for the Red Devils as they aim to challenge for silverware once again.