Niang, 18, became one of the youngest ever goalscorers at the Rossoneri when he netted in the club's 3-0 victory over Reggina in the Coppa Italia last season.
The youngster, who moved from Caen in 2012 - the Ligue 2 club he was at since he was 13 - made a further 20 appearances in Serie A under Massimiliano Allegri, and says he is determined to make an even bigger impact in this campaign.
"I feel perfectly fine in Milan and I want to stay," he told L'Equipe. "I know what I can bring the team and I'm not afraid of competition.
"I'll play where the coach asks me. I know I have the capacity to impose myself on this team."
The Frenchman, whose contract with the club runs until June 2017, has been recently linked with a move away from Milan, with Sampdoria, Genoa and Newcastle United reportedly shown interest in the striker.