Rafael Leao will remain an AC Milan player after the Serie A giants announced on Friday that the Portugal forward had signed a new deal until 2028.

"AC Milan is pleased to announce that Rafael Alexandre da Conceiçao Leao has renewed his contract with the club until 30 June 2028," Milan said in a statement.

Milan did not communicate the details of the deal but Italian media report that Leao will earn a basic net salary of five million euros ($5.4 million) with a series of bonuses in place which could make his actual earnings significantly higher.

Milan have also reportedly inserted a release clause of 175 million euros which can only be exercised during a summer transfer window.

The 23-year-old has made 162 appearances for Milan since signing from Lille in 2019, netting 41 times and setting up 29 more.

He was crucial to Milan winning their first Serie A title in 11 years last season and getting to the Champions League semi-finals this campaign.