AC Milan fans celebrate as they drive through the streets of Milan, Italy after the Serie A soccer match between Sassuolo and AC Milan, being played in Reggio Emilia, in Milan, Italy, May 22, 2022. (LAPRESSE VIA AP)

MILAN - US investment firm RedBird Capital Partners has agreed a 1.2 billion euro ($1.3 billion) deal to buy Italian soccer champions AC Milan and is aiming to challenge the elite of the European game again.

Under the terms of the deal, current owners Elliott, the US private equity group, will retain a minority investment and seats on the board, AC Milan said on Wednesday

Under the terms of the deal, current owners Elliott, the US private equity group, will retain a minority investment and seats on the board, the club said on Wednesday.

Milan have just won the Italian Serie A league title for the first time in 11 years.

"We... are excited to play a role in the club's next chapter as it returns to its rightful place at the very top of Italian, European and world football," RedBird founder and managing partner Gerry Cardinale said in a statement.

RedBird is already an investor in Fenway Sports Group, the owner of Liverpool and the Boston Red Sox baseball team. RedBird also has a controlling stake in French soccer club Toulouse.

"RedBird's investment philosophy and track record in team ownership has shown that football clubs can be successful on the pitch and sustainable off it," Cardinale added.

READ MORE: AC Milan roars back to win Serie A title after 11 years

Italian soccer clubs have recently become a popular target for overseas investors, attracted by cheaper valuations compared with those of England's Premier League and rivals in major European leagues.

Milan were a dominant force in European soccer under the previous ownership of former Prime Minister Silvio Berlusconi but won the Champions League for the last time in 2007.

The transition to new ownership will take place over the summer, with an expected closing of the deal no later than September, the club statement added.

ALSO READ: AC Milan on brink of Serie A title

Milan, European Cup winners seven times, will be looking to strengthen their ranks during the close season to help defend their Italian league title and mount a challenge in the Champions League.

Former Arsenal executive Ivan Gazidis is the club's CEO while former player Paolo Maldini serves as technical director.