The Italian media magnate is set to begin his third stint in office after winning the Italian general elections earlier in April.

Berlusconi has been president of the Milan giants since 1986, during which time he has held office as president of Italy twice.

But on Wednesday the president-elect told Italian radio station Radio Radio sport and politics were not compatible.

"Unfortunately I now have to step down from my role as president of Milan," he said.

"I believe that is incompatible with my role as president of Italy."

Berlusconi also revealed his government had no plans to set up a ministry of sport to control sporting matters in Italy.

"There will be no ministry of sport," he said. "As far as sport is concerned there is a fundamental principle that I have always followed: that it be totally and absolutely independent.

"Politics has to remain separate from sport, therefore there will not be any ministry.

"Sport has its own authorities and they should govern it democratically with everyone within them elected from those involved in all sports."

Berlusconi stepped down once before as president of the Rossoneri, in 2004, but reassumed his position in 2006 when he lost the general election to outgoing Italian president Romano Prodi.