However, he could leave the Serie A club much sooner if they miss out on Champions League football as his release clause will be halved should the Rossoneri fail to qualify for UEFA's premier club competition.
According to Italian media, he will renew with the club in the coming days and his new contract will have a standard release clause of 100m euros, but one which drops to 50m euros if Champions League football isn't secured.
As such, the 18-year-old will surely be playing in the continental competition in the 2018/19 season, whether for AC Milan or for another club.
Real Madrid hold talks with Morata's father and agent
There remains much to be discussed over Alvaro Morata's future as the player's agent and his father traveled to the Estadio Santiago Bernabeu to meet with Real Madrid on Monday morning.
Intent on leaving for Manchester United, the striker has agreed personal terms with the Red Devils and wants to complete the deal quickly so that he can start pre-season with his new side.
However Los Merengues are holding out for 90 million euros in exchange for Morata, who has so far only been subject to a 70m euro bid by United.
That logjam led to Juanma Lopez, the player's agent, and his father Alfonso descending upon Real offices on Monday for fresh talks over the transfer.
Zinedine Zidane, meanwhile, would prefer Morata to continue with Los Blancos but his intentions to leave were made clear to Lopez a month ago with a deal now long in the offing.
Manchester United hired Javier Ribalta, who brought Morata to Juventus in 2014
Javier Ribalta has joined Manchester United's sporting department, an acquisition which could be important in the Red Devils' pursuit of Alvaro Morata.
That's because Ribalta previously worked at Juventus and was involved in the deal to sign the Spanish striker from Real Madrid three years ago.
So important was he in making that switch happen that he featured in the RMTV documentary about the player, named 'Campo de Estrellas' - or 'Field of Stars' in English.
He maintains a good relationship with the 24-year-old and was even invited to his recent wedding in Venice, so he'll hope that they can reunite in Manchester.
The Catalan director began his career in Spanish football with Figueres and Castelldefels, before stints at Torino, AC Milan, Novara and then Juventus.
Now he begins a new chapter as he departs for England, where he aims to bring glory days back to Old Trafford.
Guardiola: Eric Garcia wanted to take this step
Manchester City were able to complete the signing of Barcelona youngster Eric Garcia due to the player's determination to join them, according to Pep Guardiola.
The 16-year-old will depart La Masia this summer in order to link up with the former Blaugrana coach at the Etihad Stadium.
"He wanted to take this step in his career and we gave him the opportunity to do so," Guardiola told TV3 when discussing the move for Garcia.
"I have heard very good things from people about him.
"I have good reports about him.
"I haven't been lucky enough to see him play for myself yet, but people spoke very highly about him and we had the chance to sign him."
It is a transfer which has not gone down well at Barcelona, who will receive a fee of 1.5 million euros from City for the defender's signature.
Serra Ferrer: Barcelona asked for an opinion on Ceballos and I gave one
Real Betis were able to unveil Cristiano Tello to the media on Monday and conversation naturally turned to Barcelona's interest in fellow Spaniard Dani Ceballos.
Reports that the Andalusians would prefer a sale to the Camp Nou over Real Madrid have surfaced but Betis vice-president Lorenzo Serra Ferrer gave only hints about the specific interest in Ceballos.
"I have dedicated my time to convincing and inviting Tello," he told speakers. "With Dani I was asked for an opinion [by Barcelona] and I gave it, as you can imagine.
"It is precisely because of [Ceballos' Under-21 success] that we must congratulate him, we are proud of the representation that we have had. He is loved and valued, hopefully he continues here, not just one season more, but many more.
"That is our wish and I express it as vice-president, but there is another person, Dani, who thinks that if he goes to a big club he can also feel more fulfilled. We do not agree 100 percent with that and we would like him to continue. "
Denying the idea of a meeting with Real over Ceballos' future, Betis have already spoken to the starlet and hope to persuade him to stay.
"It was very friendly, very correct," Ferrer added. "He understood that sometimes defeat, when felt in the dignified manner that it was, helps us to grow a little although we'd prefer it the other way around.
"We talked about things, not so much the depth of this team or any other. It was a kind and respectful conversation. We have to wait until tomorrow or the day after for the coach to talk to him, and see if he gives him his support, and to see that the project is not based only on him but on football players like Tello, and I am pleased that this can influence him. "
Sandro is officially an Everton player
Given the unpredictability of the market, a transfer is never fully completed until the pen has been put to paper, which is exactly what Sandro has done this Monday.
He is now an Everton player and has already donned the famous blue jersey.
"This is a great step for me in my career," he said of the switch on British television.
"Everton is the ideal place for me, with a great coach."
| ¡Bienvenido, @ sandroramirez9! The forward has signed a four-year deal, joining from alaMalagaCF. #WelcomeSandrohttps://t.co/j5xjihkYaX
? Everton (@Everton) 2017 (e) ko uztailak 3
His move from Malaga, where he spent one season, to Goodison Park will cost the Premier League club six million euros, the price stated in his release clause.
Real Madrid to change medical staff
Ahead of the 2017/18 season, Real Madrid are to overhaul their first-team medical staff, with chief doctor Jesus Olmo among those to leave the club.
The decision has been provoked by Olmo's decision to undertake some new external projects, say club sources.
As such, Los Blancos decided that now was an opportune time to make a change in the department, one which has come in for criticism in the past.
Among the other members of the medical team who are likely to leave is surgeon Mikel Aramberri, who arrived at the Estadio Santiago Bernabeu in 2015.
As for replacements, several names have been suggested, including the current Castilla doctor, who Zinedine Zidane is believed to be ready to endorse.