The 19-year-old France Under-21 international has failed to make an impact at the Serie A club, scoring only goal in 33 games since his move from Caen in August 2012.
Niang has claimed he rejected overtures from Marseille and Lyon in preference of a move to Ligue 1 strugglers Montpellier.
In quotes reported by L'Equipe: "I'm very happy about joining Montpellier. I also had some offers from Marseille and Lyon, but I want to help Montpellier."
"I don't have any regrets about joining the Rossoneri," he added. "My ambition is to return to Milan as an even better player."
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