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Cagliari says it has allowed coach Massimiliano Allegri to break his contract, leaving him free to take over at AC Milan.
Allegri was sacked by Cagliari in April after he became distracted with speculation over his future, but he has remained on the payroll until now.
On the club's website Thursday, Cagliari said president Massimo Cellino had decided to let Allegri leave following a request from Milan, but added that Cagliari had not asked for any financial compensation.
Allegri has been Milan's long-term target to succeed Leonardo, who was sacked in May after one season in charge.
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