Clarence Seedorf, who replaces the fired Massimiliano Allegri, landed in Milan on Wednesday night before signing his new deal on Thursday.
Milan says in a statement that "Clarence Seedorf is the new coach of the first team squad and has signed a contract until June 30, 2016.''
Seedorf then travelled to Milan's training ground where he met the players.
Two Champions Leage titles
First to greet him was former teammate Daniele Bonera.
The 37-year-old Seedorf spent 10 years as a player with Milan, helping it win a number of trophies including two Champions League titles and two Serie A crowns.