AC Milan president Silvio Berlusconi has revealed that Leonardo is to leave the club at the end of the season.
The Brazilian, a former fans' favourite at Giuseppe Meazza, has been in charge of the Serie A giants since May 2009.
He endured a tricky start to his reign, with disappointing performances put in both at home and abroad.
However, he was able to oversee a gradual improvement and had Milan primed to launch a title challenge at one stage this season.
Unfortunately, results have since fallen away again since and the Rossoneri appear destined to end the campaign empty-handed.
They trail cross-city rivals Inter Milan by nine points with three games of the season remaining and crashed out of the UEFA Champions League at the first knockout stage at the hands of Manchester United.
Reports have suggested for some time that Leonardo would vacate his post in the summer after failing to bring about the required success, and that has now been confirmed.
Berlusconi told Thursday's Corriere dello Sport: "Yes, he is going."
The Italian prime minister added: "Leo was too stubborn and the team played badly. However, he is a good person and a good coach."