AC Milan have been handed a two-year ban from European competitions for breaching Financial Fair Play regulations.
The Club Financial Control Body (CFCB) made the decision following an investigation into allegations of FFP violations, including failure to comply with the break-even requirement, by the Italian giants.
"The CFCB, chaired by José Narciso da Cunha Rodrigues, has taken a decision in the case of the club AC Milan that had been referred to it by the CFCB Chief Investigator for the breach of the UEFA Club Licensing and Financial Fair Play Regulations, in particular the break-even requirement," said the financial control body in a statement.
"The club is excluded from participating in the next UEFA club competition for which it would otherwise qualify in the next two seasons (i.e. one competition in 2018-19 or 2019-20, subject to qualification).
"This decision may be appealed to the Court of Arbitration for Sport, in accordance with Article 34(2) of the Procedural rules governing the UEFA Club Financial Control Body, as well as Articles 62 and 63 of the UEFA Statutes."
Milan were taken over in 2016 and spent more than £170m on new players last summer, including Leonardo Bonucci and Andre Silva.
The club finished in sixth place in Serie A last season but will not be allowed to compete in next term's Europa League unless they are successful in appealing against the ruling.
The CFCB has pledged to publish a full breakdown of its decision on the official UEFA website soon.
