The Brazilian has long been expected to quit the club at the end of the season.
Leonardo told the club’s official website: “We are here to communicate that we have decided to separate by mutual consent in a tranquil and serene manner just like our relationship has been over the years.
“There are no surprises. Everything has been clear today like always. We have reached the end.
“We have qualified for the Champions League which is what we wanted, and we decided this morning to officilise the choice we made in Via Turati.
“The time has come to close, but we have done it with tranquility.”
AC Milan CEO Adriano Galliani added: “I am sorry that we have decided to separate. But, we did it amicably and by mutual consent.”
