AC Milan’s new owners have a lot of catching up to do to restore the seven-times European champions as a major force in football.

Former Italian Prime Minister Silvio Berlusconi agreed on Friday to sell the club to a consortium of Chinese investors, ending his three decades of ownership.

The job of rebuilding will now fall to investment fund Haixa Capital and Yonghong Li, chairman of management company Sino-Europe Sports Investment Management Changxing.

Berlusconi’s Fininvest family holding said it had signed a preliminary agreement valuing the club at 740 million euros ($A1.08 billion) including 220 million euros ($A321 million) of debt.

Although much of Berlusconi’s reign was hugely successful, his last few years were a tale of mid-table mediocrity, unsuccessful transfers and musical chairs in the coach’s hot seat.

Milan won Serie A eight times and the Champions League on five occasions under Berlusconi but the titles dried up after their last league title in 2011 and in the last three seasons they have staggered home in eighth, tenth and seventh place.

The titles for AC Milan have dried up since 2011. Photo: Getty

At first, the club’s leadership pledged to put their faith in young players, only to go out and sign players in the middle or latter stages of their careers.

One example was their decision to bring Brazilian midfielder Kaka back for a second stint at the club in 2011 in a classic case of what Italians call “reheated soup”.

Other failed signings of players attempting to revive flagging careers included misfiring Spain forward Fernando Torres, Ghana midfielder Michael Essien and maverick striker Mario Balotelli.

Coaches came and went with bewildering frequency and, since January 2014, Massimiliano Allegri, Clarence Seedorf, Filippo Inzaghi and Sinisa Mihajlovic have all been fired.

Cristian Brocchi, in charge for the last few games of last season, walked out last month and was replaced by former Sampdoria and Fiorentina coach Vincenzo Montella.

“It is fundamental for me to feel supported, so people have confidence in me,” said Brocchi.

“We did not have the right conditions to continue, so my decision to walk away was right for the good of the club and the good of Berlusconi.”