The attacker, who scored 30 goals in 46 matches last season is heading to the European giants despite strong reported links to the Premier League.
Pescara striker Gianluca Lapadula has agreed to join European giants Milan, according to the latter club's website, putting to an end the pursuit from a number of English outfits reported to have held an interest in a player who scored 26 league goals last season.
The AC Milan website has quotes from the 26-year-old confirming his switch to the San Siro from Pescara keeping the hotshot in Italy.
"It's something that we both wanted, I am very happy," Lapadula said.
"I thank Pescara, it was a quick deal, strongly desired by both. It is a super busy week, now I will do what we must do here in Milan."
Leicester City - Premier League Title Winners Parade
Lapadula was closely linked to both Leicester and Tottenham this summer following comments from Pescara president Daniele Sebastiani, that appeared in Itasportpress, after the striker's superb season helped fire Pescara to promotion to Serie A.
There had been plenty of talk that Foxes boss Claudio Ranieri had used his contacts back in Italy to identify a really talented attacker that would both do a job in the Premier League, and be a player few in England would contest the champions for, or know much about.
England's Jamie Vardy
Leicester have of course been so impressive with recent signings like N'Golo Kante, Riyad Mahrez and Jamie Vardy, all of whom have come from relative obscurity, at least in the eyes of Premier League football, to become superstars.
With uncertainty over the future of talisman Vardy for much of the summer, it was no surprise to see Ranieri considering attacking reinforcements, but with the England man this week confirming his stay at the King Power Stadium by signing an improved contract, it has given one of the biggest Italian clubs the room to make a move for a player who was only outscored by Gonazalo Higuain in the country's top two divisions last season.
Football Soccer - Real Madrid v Atletico Madrid - San Siro