Former manager Massimiliano Allegri – who spent four years in charge at San Siro between 2010 and 2014 – is reportedly set, external for a return.
Conceicao, 50, was handed the job last December after the the sacking of Paulo Fonseca and signed an 18-month deal.
He won won 11 trophies in six years at Porto and won the Italian Super Cup with Milan just a week after taking the job.
But they lost the Coppa Italia final to Bologna and their league form never really picked up.
Under Conceicao, they finished in eighth place – meaning no European football next season – while rivals Inter play Paris St-Germain in this weekend’s Champions League final.
Milan said:, external “The club would like to thank Sergio and his staff for their commitment, professionalism and dedication in leading the team in recent months.
The Rossoneri family bids farewell to the coach who contributed to the conquest of the 50th trophy in Milan’s history, wishing him the best for his future.”
