Dutchman Seedorf only arrived at the San Siro in January but has been relieved of his duties after Milan finished eighth in Serie A.
Inzaghi, a Milan legend like Seedorf, has never coached at a senior level but has been promoted from Milan's under-19 team.
Seedorf's dismissal comes after Milan president Silvio Berlusconi said that the former Rossoneri midfielder was part of the club's 'past' on Friday.
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