Representatives of the current Chinese Super League champions, who are coached by Italian World Cup-winning manager Marcello Lippi, struck a deal following three days of meetings with Milan vice-president Adriano Galliani in northern Italy.
The partnership will allow both clubs to arrange mutually beneficial player loans and first-option schemes, with work set to start on youth football programmes as Milan continue to strengthen their business links to potential Chinese investors.
A statement on www.acmilan.com read: "Adriano Galliani was in high spirits when he received the president of Guangzhou Evergrande, Liu Jong Zhuo, at Via Turati.
"The commercial partnership between the two clubs was sealed with smiles and a handshake. Galliani gave the Chinese club president a replica shirt with 8-Liu printed on it as a gift."