The 2006 World Cup winner is glad he is staying put and will not be packing his bags for Stamford Bridge...
The midfielder is pleased with the decision and has expressed his delight at how everything played out.
"Today is a beautiful day and I am overjoyed to be able to close my career here. Thanks to the president, Adriano Galliani, and especially [coach] Leonardo," he explained to Milan Channel.
"When they told me the news, we were all happy. This story is finally over and I can continue my adventure with the Rossoneri. There was the possibility I could have left, but the decision to remain was mutual."
The 30-year-old was reportedly of major interest to former coach Carlo Ancelotti, now at Chelsea, but Milan have opted not to sell their experienced playmaker to the Blues.
Pirlo has been with Milan since 2001, when he joined from Inter in a swap deal. He has helped the club to one Serie A title, two Champions League trophies, and a World Club Cup, among other trophies.
Adam Scime, Goal.com