The appointment was confirmed by the club via their website on Sunday after the former Fiorentina star won the election by a landslide.
The 49-year old who began his career with the Lusitanians will be in office until 2025.
Costa spent twelve years in the Serie A with two different club sides. He first arrived in 1994 and spent seven years at Fiorentina and helped the club win two Coppa Italia titles before switching to Milan in 2001.
He continued the success at Milan, winning the UEFA Champions League in the 2002-03 season and the SerieA the the following season.
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