Days after the 27-year-old Suazo was reported to have joined Serie A champion Inter from Cagliari, AC Milan said it had signed Suazo.
"The Honduran striker will wear the shirt of Milan next season," a statement said on Milan's Web site. "The transfer from Cagliari to the Rossoneri went ahead after negotiations during the night."
Suazo scored 14 league goals in 2006-07 and 22 in 2005-06 for Cagliari. At the Italian Soccer Oscars in January, he shared the award for best foreign player in Serie A with AC Milan's Brazilian playmaker, Kaka.
Milan's announcement about Suazo followed reports that it had been repelled in its bid to sign Barcelona striker Samuel Eto'o.
"It is very probable that Eto'o will not come," Milan vice president Adriano Galliani told the Milan Web site. "There has been no intention to spite Inter. We followed Suazo even last year. [Cagliari president Massimo] Cellino said that negotiations with Inter were over therefore we started and concluded new talks."
Suazo's possible arrival makes it less likely that Chelsea striker Andriy Shevchenko will return to Milan.
For its part, Inter was believed to want Suazo so it could unload Brazil forward Adriano.