Sky Sport Italia claims that coach Gennaro Gattuso and director Leonardo will announce their departure from Milan on Tuesday.
The decision follows this evening’s meeting between CEO Ivan Gazidis and Gattuso.
They leave on friendly terms, according to the reports, and will terminate the contract by mutual consent with two more years left to run.
Gattuso will give up 90% of the salary he would be owed for the remainder of his contract.
The Rossoneri finished fifth in the season, one point off the spots held by Atalanta and Inter in the Champions League.
In November 2017, Gattuso took over from sacked Vincenzo Montella, just a few months after being given the job at Milanello to the Primavera youth team.
On the Milan bench he oversaw 40 wins, 22 draws and 20 defeats.
There have been several reports that director Leonardo is resigning as he has received offers from the Brazilian Federation and his old Paris Saint-Germain club as well.
The former midfielder had a series of personality clashes within the club, with Gattuso and ex-Arsenal chief Gazidis in particular.
Also still to be decided is the future of Paolo Maldini as part of the club, as Gazidis appears to be making a complete revolution behind the scenes.