The young forward still has a contract for four-and-a-half years, but the Serie A giants are keen to hold on to him for an additional season
The Italy international inked a fresh deal with the San Siro giants until June 2017 at the start of this season, but Milan are ready to offer him a new and improved contract for one additional season following his fine performances in 2012-13.
"We will open contract talks with Milan over a new deal until 2018 in the upcoming days," La Florio was quoted as saying by La Gazzetta dello Sport.
The 20-year-old joined the Rossoneri from Genoa in the summer of 2011, and has since developed into an important first team member at the Serie A giants.
El Shaarawy has already netted 15 goals in 22 league appearances this term, helping Milan to fifth spot in the league table after a difficult start.