Milan snap up £30m Rui Costa

Costa snubbed a move to Parma

Portuguese international Rui Costa has become AC Milan's second major signing in two days.

The Fiorentina playmaker ended a week of transfer speculation by agreeing a £30m move to the Rossoneri.

On Monday, Milan signed Italian international striker Filippo Inzaghi in a £21.7m deal from Juventus.

Terim and I have had an great relationship in Florence

  Rui Costa

By joining Milan, Costa, who was also wanted by Lazio and Parma, links up again with former Fiorentina coach Fatih Terim.

Costa told Milan's official website: "I have grown up watching the Milan of Arrigo Sacchi and of Marco Van Basten.

"I have always retained that memory and it is normal my ambition was to be part of this."

Costa had been on the verge of a move to Parma after Fiorentina, attempting to clear debts of £40m, agreed to sell him and goalkeeper Francesco Toldo to their Serie A rivals for £43m.

"Terim and I have had an great relationship in Florence," added Costa.

"It will be beautiful to play with Andriy Shevchenko at Milan. I repeat, I am proud to have chosen this club.

Ukrainian striker Shevchenko today extended his contract at the San Siro until 2006.