The Italian giants have been excluded from the competition after being found to have breached the governing body’s licensing and Financial Fair Flay regulations.
A statement confirmed the club, who finished sixth in Serie A last season, had failed to meet the “break-even requirement”.
Milan will have the right to appeal against the decision to the Court of Arbitration for Sport.
UEFA’s statement read: “The club is excluded from participating in the next UEFA club competition for which it would otherwise qualify.”
The seven-times European champions were referred to UEFA’s club financial control body last month having sustained losses for several years.
The club are reported to have argued their finances are now stable as a result of their takeover by Li Yonghong last year but UEFA has still acted.
The punishment could increase speculation over the futures of goalkeeper Gianluigi Donnarumma and defender Leonardo Bonucci, who have persistently been linked with moves away from the San Siro.
He’s had a relatively poor World Cup thus far but Lionel Messi scored arguably the best goal of the competition with a sublime finish.
The spotlight was on Messi as his Argentina side battled for a place in the Round of 16, knowing only a win would see them through.
On this occasion, Messi was not a one-man band. For once, the burden was shared.
Marcos Rojo – fortunate to not concede a first-half penalty for a high boot – appeared from nowhere to offer salvation when everything appeared lost for Argentina.
Manager Jorge Sampaoli’s charges came into this anticipated contest on the back of widespread reports of mutiny. They had been sparked by Thursday’s 3-0 humbling served up by Croatia.
On that night, Messi, uncharacteristically, was missing in action. Lost in the dumbfounding switch to a 3-4-2-1 formation that was not fit for purpose.
This followed the opening 1-1 draw against Iceland in which the Barcelona icon had been everywhere, and delivered only a pained second-half penalty miss.
On Tuesday night, they went ahead on 14 minutes as the great man provided the requisite control from a perfect Banega pass of pure beauty. The supreme Sevilla centre midfielder should not had been forced to wait until then for his first World Cup start.
But then, retreat followed and Nigeria knew that only a draw was needed.
Mascherano’s gift was duly taken. Argentina stuttered as ignominy awaited.
The likes of Paulo Dybala, Mauro Icardi and Gonzalo Higuain – again guilty of an alarming miss – have all previously stumbled in Messi’s shadow. The great man carried them through qualifying, as he’d done towards four previous final defeats at World Cups and Copa Americas.
Then Rojo arrived late to fire Argentina into the next round. The dream, somehow, remains alive.
Harvey Neville, the son of Phil Neville, has signed a contract with Manchester United.
The 16-year-old, who will now link up with the United Academy, has shared a photograph of himself signing the agreement via Instagram.
He wrote: “I am very proud and excited to have signed for the club I have supported my whole life @manchesterunited.”
Neville previously played at United as a junior before moving to Manchester City and then to Valencia when his father took up a coaching position with the Spanish club.
Phil Neville, 41, and his brother Gary were members of United’s famed ‘Class of 92’ which enjoyed considerable success under the management of Sir Alex Ferguson.
He also played for Everton, earned 59 caps for England and is is currently manager of England Women.
Phil Neville wrote: “Proud of you @harvey.neville. Go follow your dreams!”
Provided by Press Association Sport