The 26-year-old forward will be placed on waivers for the purpose of being loaned to Hershey of the American Hockey League, the Capitals said.
Milano set NHL career highs in assists (20) and points (34) and tied his high of 14 goals for the Anaheim Ducks last season. He signed a professional tryout contract with the Calgary Flames but was released Oct. 6.
Selected by the Columbus Blue Jackets in the first round (No. 16) of the 2014 NHL Draft, Milano has 81 points (36 goals, 45 assists) in 197 regular-season games for the Ducks and Blue Jackets. He does not have a point in four Stanley Cup Playoff games.