Zlatan Ibrahimovic has extended his contract with AC Milan by a year, the club announced.
The striker's contract expired at the end of last season but he has signed a new deal after impressing with his performances.
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The player's agent Mino Raiola hinted recently that Ibrahimovic was edging closer to signing an extension at the San Siro.
"AC Milan is delighted to announce that Zlatan Ibrahimovic has renewed his contract with the club until June 30, 2021," said a statement.
"The Swedish champion began his journey with the club in 2010 when he made 85 appearances and scored 56 goals during a stint which also yielded one Scudetto and one Supercoppa. Ibrahimovic returned to Milan in January this year and contributed significantly to AC Milan's return to Europe, netting 11 goals in 20 matches, reaching the 100 appearances milestone with the Rossoneri," it added.
Ibrahimovic, 38, rejoined the Serie A club in December on a free transfer after leaving MLS team LA Galaxy last summer.
He previously spent two seasons with Milan from 2010-2012, where he won the league title.
The former Sweden international finished the campaign with 10 goals in 18 appearances and helped Milan secure a Europa League place for the 2020-21 season.
He also became the oldest player to score at least 10 goals in a single Serie A campaign.
With 51 league goals at Milan, Ibrahimovic is the first player to reach the half-century mark for both San Siro clubs. He scored 57 goals for rivals Inter Milan between 2006 and 2009.