The Italian giants endured a miserable 2014-15 campaign, finishing the campaign in tenth place and failing to secure European football for a second successive season.
Mihajlovic, who was unveiled as the replacement for the sacked Filippo Inzaghi on Friday, is confident he has the tools to breathe new life into the club, with the recent signings of strikers Carlos Bacca from Sevilla and Luiz Adriano from Shakhtar identified as examples of the club's desire.
“Some top players are joining us. There’s no more ambitious project than ours in Italy,” Mihajlovic told a press conference.
"It’s a great honour to be here, it’s a very special first time for me… We have to win one game after another and we’ll keep going like that.
“I want my team to scare other teams when they are on the pitch.”
President Silvio Berlusconi said he is confident Mihajlovic can see Milan challenge Juventus at the top of Serie A.
“We were convinced that, after weighing up many options, some from abroad, he is the best choice for the job.
“He has a big personality. He showed that last season with Sampdoria. He understands football and has proved he is able to be a leader. He has also shown that he studies his opponents thoroughly, which is very important,” Berlusconi said.
“We can with the league title. We know we have an excellent foundation and I think we can, with the squad we have now, we can compete for top honours with Mihajlovic on board. He has all the qualities to compete with Juventus at the top of the table.
Berlusconi added that the time has come for the Rossoneri to leave the historic Stadio Giuseppe Meazza in San Siro, which they share with city rivals Inter, and build a new stadium of their own in the Portello area of Milan.
He continued: “Big teams have their own stadium… it’s the right time for us to go forward
“We have ten offers from investors offering to finance the building of a new stadium. We will wait until we have the final go-ahead, but I have no doubt we will get that soon.”
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