Fiorentina eased to a 5-1 win over Pescara, ensuring that they would take advantage of any slip by the Rossoneri against already relegated Siena.
But Siena went ahead and Massimo Ambrosini was sent off for Milan, who then scored twice in the final minutes through Mario Balotelli and Philippe Mexes to make it into the top three.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.