Rúben Amorim has verbally agreed to become AC Milan’s next head coach, ending a six-month spell on the sidelines since his dismissal from Manchester United in January. The deal is expected to run until at least 2028 at an annual salary of €4 million plus bonuses.

The appointment, if finalized, would also create an unusual financial side effect: Manchester United stands to save up to £15.9 million in compensation payments simply because Amorim found a new job.

From Old Trafford exile to San Siro revival

Amorim was sacked by Manchester United on January 5, 2026, after which he has been without a managerial position.

AC Milan failed to qualify for the Champions League in 2025-26, a result that prompted the departure of long-time coach Massimiliano Allegri. The club reportedly considered several candidates to replace Allegri, including Matthias Jaissle, but Amorim emerged as the top choice, with negotiations progressing quickly through mid-June.

The financial mechanics behind the move

When Manchester United dismissed Amorim, the club was on the hook for a significant severance package, reportedly totaling as much as £15.9 million for the manager and his coaching staff.

In most employment contracts at this level, severance obligations are reduced or eliminated entirely when the dismissed party secures a new comparable position. By signing with Milan, Amorim would hand Manchester United a financial reprieve worth potentially £15.9 million.

What Amorim inherits at Milan

The contract reportedly could extend to 2029, which would give Amorim a meaningful runway to implement his ideas. The proposed €4 million annual salary is modest by the standards of elite European coaching appointments, which suggests both sides are being pragmatic about the current circumstances, particularly given Milan’s absence from Champions League revenue.