The Brazil international was believed to be close to leaving the Serie A giant for Paris Saint-Germain last month, but the move eventually fell through as club president Silvio Berlusconi vetoed it.
Silva's agent responded to the failed transfer by demanding a new and improved deal for his client, and the center back has now ended all speculation about his future by inking a one-year extension to his previous contract.
The 27-year-old joined AC Milan from Fluminense in the summer of 2009 and has since developed into one of the Rossoneri's undisputed stars, making over 100 official appearances for the 2011 Serie A champion.
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