The 45-year-old's future with the Rossoneri was finally clarified as the coach emerged unscathed from discussions with the club's hierarchy
Allegri's long-term future at the club had been thrown into some doubt in recent weeks after the 45-year-old narrowly secured Champions League qualification on the last day of the season, with rivals Roma reportedly ready to swoop for the coach had he parted company with the Italian giants.
However, he finally sat down with the club's hierarchy after a number of postponed arrangements and together Galliani and Berlusconi decided to retain his services.
"With Galliani and Allegri we had a frank and cordial discussion in which we revisited and analysed the past season, so there was a clarification on certain things," said Berlusconi.
"We reached an agreement on the rights and duties of the club towards the coach and the coach towards the club.
"We also talked about the type of football that Milan must play and the squad for next season, setting out guidelines for the transfer window.
"The rapport with the coach, which has never been interrupted, continues with faith and in absolute reciprocal respect."
Allegri took the reins at San Siro in 2010 and guided Milan to the Scudetto in his first season.