Stefano Pioli. Getty Images

Former Inter Milan coach Stefano Pioli has been appointed coach of city rivals AC Milan, the Italian club confirmed on Wednesday.

Pioli, who most recently coached Fiorentina, takes over after Marco Giampaolo was sacked Tuesday after four defeats in the first seven league games this season including a 2-0 derby loss to Inter.

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Widespread reports have claimed that the former Lazio, Inter and Fiorentina boss has signed a two-year deal with Milan – with a couple of interesting clauses.

The former 18-time Italian champions, who won their last Serie A title in 2011, are in 13th position just three points above the relegation zone.

Concise News had reported that the Rossoneri parted ways with Giampaolo after just seven games in charge as the 18-time Serie A champions dropped to 13th place in the league.

“AC Milan announces it has relieved Mr. Marco Giampaolo from his position as coach of the First Team,” they said in a statement.

“The Club is grateful to Marco for the work carried out and wishes him all the best to come in his professional career.”

The former Sampdoria head coach, who replaced Milan legend Gennaro Gattuso during the summer, has suffered four defeats in his first seven games, including a 2-0 loss to city rivals Inter.