Leonardo has left Milan by mutual consent following weeks of speculation over his position at the club in the Italian press.
The manager's relationship with Silvio Berlusconi has deteriorated after the owner publicly criticised his team selection on a number of occasions, and the only surprise over today's announcement was that it should arrive the day before their final game of the season, against Juventus.
"We are here to announce that we will be parting ways by mutual consent, in a calm and clear way that is befitting of our relationship down the years," said the Milan vice-president Adriano Galliani. "There are no surprises, everything is very clear, today as always. We have reached the end.
"The aim of reaching the Champions League, which was very important to me, has been achieved and this morning we have decided to make official the decision we made [at the club's offices] in Via Turati. This is the moment to part ways, but in a calm way."
Berlusconi had already pre-announced the manager's departure two weeks ago, when he was quoted by the Italian newspaper Corriere dello Sport saying: "Yes, he is going." He accused Leonardo of being "hard-headed" and although Galliani immediately insisted that Berlusconi must have been misquoted, it was clear at that stage that the manager's tenure was coming to an end.
Leonardo had spoken before of wanting to spend more time with his family, and some pundits in Brazil have suggested he may be offered the Brazil job after this summer's World Cup. He insisted today, however, that he would be taking a break from management.
"I only need to thank Milan who gave me every opportunity," said Leonardo. "I was a product of Milan, I didn't know what it meant to be a manager. It was an extraordinary thing but I don't know if I will do it again in the future. Certainly not in the next few years. I have no fear of the future, I have no thoughts and no offers."
Leonardo's successor is widely expected to come from within the club, with Leonardo's assistant Mauro Tassotti and the youth team coach Filippo Galli the two most likely choices. The club's former striker Marco van Basten has also been linked with the position.