Sulley Muntari will play in Saudi Arabia for the next two seasons.
The Ghana international has signed a two-year deal for €2.5 million per season with Al Ittihad Jeddah.
Having played in 83 games for AC Milan and getting 13 goals in the process, the player mutually agreed with the club to part ways after it became clear they would not need him.
The midfielder, 30, was released despite still having a year to run on his deal.
The signing-on fee to the Saudi side was not mentioned, but Joy Sports understands it is €14 million.
Reports in Italian media say Kevin-Prince Boateng is being scouted to join the club as well.