AC Milan have been banned from next season’s Europa League, UEFA has announced.
The Italian giants have been excluded from the competition after being found to have breached the governing body’s licensing and financial fair play regulations.
A statement confirmed the club, who finished sixth in Serie A last season, had failed to meet the “break-even requirement”.
Milan confirmed on Wednesday evening they will appeal against the decision to the Court of Arbitration for Sport.
“AC Milan has instructed its legal team to appeal the decision before the Court of Arbitration for Sport in Lausanne, seeking for a prompt review of the ruling,” the Rossoneri said in a statement.
“AC Milan fully trusts the CAS will hear its arguments and will refrain from commenting further pending the arbitration.”
UEFA’s statement read: “The club is excluded from participating in the next UEFA club competition for which it would otherwise qualify.”
The seven-times European champions were referred to UEFA’s club financial control body last month having sustained losses for several years.
The club are reported to have argued their finances are now stable as a result of their takeover by Li Yonghong last year but UEFA has still acted.
The punishment could increase speculation over the futures of goalkeeper Gigio Donnarumma defender Leonardo Bonucci, who have persistently been linked with moves away from the San Siro.