Fagioli was hit with a 12-month ban by the Italian Football Federation (FIGC) for breaching gambling regulations by betting on a number of illegal platforms.
He will not be able to play for seven months, while five months of the suspension will be served by alternative means, including therapy sessions and public meetings.
The Serie A side have vowed to stand by the 22-year-old and will help him fulfill the duties outlined in his punishment. He will then be welcomed back into the team once he is eligible once again.
A statement from the club, which referred to the FIGC's latest update on the case, read: "The Club has noted the official press release from the FIGC and confirms its full support for Nicolò Fagioli in tackling this path, providing the player with the necessary support in carrying out the indicated therapeutic plan and, as expressly provided for in the agreement, collaborating with the Federation to outline the scheduled appointments.
"We are firmly convinced that Nicolò, with the support of the Club, his teammates, his family and the professionals who will assist him, will face the therapeutic and training process with a great sense of responsibility and, once the disqualification has been served, will be able to return to competing with due serenity."
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Fagioli is not the only Italy player to be implicated in the controversy, as Newcastle's Sandro Tonali and Aston Villa's Nicolo Zaniolo are also under investigation.
Fagioli has allegedly told prosecutors that it was Tonali who introduced him to gambling as he revealed how he racked up huge debts and borrowed money from fellow players. He even alleged that debt collectors told him they would break his legs if he did not pay up.
Tonali, for his part, has reportedly admitted to betting on AC Milan matches while he was under contract with the club, but insisted he was not involved in said games. As a result, he could face a much more severe punishment than Fagioli.