FABIO CAPELLO, AC Milan's coach, said yesterday he would leave the Italian champions at the end of the season and move to Real Madrid, although a top Milan official insisted he could still stay.

"I have decided to manage Real. I haven't yet signed a contract but I'm going to Madrid," Capello told Gazzet'a dello Sport.

He said he had agreed in principle a three-year contract with Madrid, but rumours that he would be paid a net salary of $ 6 million a year were misleading. "It is much, much less than that," he said.

Capello has a meeting with Milan owner Silvio Berlusconi tomorrow. Milan's vice-chairman Adriano Galliani said nothing was final, but if Capello did decide to leave then Uruguayan coach Oscar Tabarez, the former Cagliari coach, could replace him.

Capello said he was leaving because Milan had attached performance-related provisions to an offer of a new three-year contract. A company that imposes clauses means it doesn't have any faith in you, he said.

But while Capello prepared to leave others were arriving at Milan. Yesterday the club unveiled their two new Dutch signings, Michael Reiziger and Edgar Davids, who guided Ajax to victory over their new club in last season's European Cup final.

Both internationals, midfielder Davids (23) and defender Reiziger, who turns 23 on Friday, have signed four-year contracts taking them to June 2000.

Galliani explained: "At the end of this season, we will be losing two great players. Mauro Tassotti and Roberto Donadoni." Tassotti, who is ending an 18-year playing career with the club, will take on a training/coaching role, while Donadoni, after 10 seasons, is heading for the fledgling Major League Soccer in the United States.

Verona said yesterday that they had signed Dutch midfielder Michel Ferrier, an announcement timed to respond to a racist protest over the transfer.

A club spokesman said Verona, top of serie B, had wanted to delay confirmation of Ferrier's move from Dutch club Volendam until the club were sure of promotion.

But he said directors decided to announce the signing after a group of racists raised a black effigy of the player with a noose around its neck at Verona's ground last Sunday. The protest followed reports that Verona were interested in Ferrier