Milan capture Nesta
The Rome-born stopper has spent all his career with Lazio, but the Stadio Olimpico outfit have been forced to cash in on their prized asset due to their increasing financial problems.
Milan made an unsuccessful move earlier on Friday when their £17 million bid was rejected - but just hours later, an increased offer of £21 million was accepted by Lazio.
Nesta wasted little time in agreeing terms with Milan, who brought to a close his nine-year Biancocelesti career.
Milan confirmed the news on their website saying: "We have closed the transfer of Nesta for five years
"This purchase from Lazio us unequalled and should trigger enthusiasm for both the club and fans."