Since retiring as a player has been working within the AC Milan structure as youth team coach after a stuttering coaching career elsewhere, with short stints at Sion in Switzerland, at Palermo and Pisa in Italy and at Greek minnows OFI Crete.
"AC Milan announce to have parted ways with coach Vincenzo Montella", reads the statement.
Montella took to Instagram to bid farewell.
"I thank the fans for their support, [managing director Marco] Fassone and [sporting director Massimiliano] Mirabelli for this opportunity and my staff for supporting me throughout". I would like to thank the players and you, the fans, for the attractive moments we spent together, hoping that Milan will get back up there where they belong.
After the disappointing goalless draw against Torino at the Stadio Giuseppe Meazza in Milano's San Siro district, AC Milan have now recordedfour fixtures in this seasons Serie A where the Rossoneri have failed to find the back of the net.
Milan lanuguish in seventh place, 11 points away from the fourth position which would guarantee a place in the Champions League next season.
There is also mounting speculation in Italy that Milan will not be admitted to either the Champions League or the Europa League due to alleged financial irregularities over the takeover of the club last April.