The German-born midfielder, whose impressive displays helped Ghana reach the quarter-finals of the 2010 World Cup, will spend the season at Milan who have already agreed a deal with Serie A rivals Genoa to make the move permanent.
"Kevin-Prince Boateng is from today a Milan player, arriving on loan from Genoa, but with a buy-out clause in favour of Milan," read a statement on the club's website.
The 23-year-old has been training with Genoa in recent days. Earlier this month owner Enrico Preziosi said: "Our club must have good relations with the big clubs.
"Boateng will be a Genoa player but will not play with us. We'll see what club we can find an agreement with."
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