The Serie A newcomers, who sit third from bottom of the table, fired coach Eusebio Di Francesco on Tuesday.

Inzaghi, who currently coaches Milan's youth squad, was offered the post but said Wednesday: "I'm flattered and honored that Sassuolo, an ambitious club with clear and innovative ideas, considered me for the position.

"But I have to satisfy and respect Milan's wishes for me to remain with the club as their youth coach."

Malesani, a former coach of Parma and Fiorentina, took his first training session on Wednesday afternoon and is set to be unveiled by the Emilia-Romagna based club on Thursday.

No details of the length of Malesani's contract were released.

A brief statement by the club said: "Sassuolo would like to announce the first team squad will be coached by Alberto Malesani. He will take over in time for a training session this afternoon."

Last season Di Francesco steered Sassuolo into Italy's top flight for the first time in their history.

Having suffered a 7-0 hammering at home by Inter Milan at the start of the season, Sassuolo's battle to stave off relegation was boosted two weeks ago with a stunning 4-3 win over seven-time European champions AC Milan.

However Sunday's 3-1 defeat at fellow strugglers Livorno was enough to make Di Francesco the 10th coaching change of the season in Italy's top flight.