Sky Sport 24 claims that an agreement has been reached between the Rossoneri and the player's agent. Milan vice-president Adriano Galliani and Roberto de Assis held a meeting on Monday during which it was decided that the 30-year-old would carry on playing for the former Italian champions.
Ronaldinho's contract with Milan ends in the summer of 2011 and there had been reports claiming that the former Barcelona star wanted to leave San Siro. However, in recent days Milan chief Silvio Berlusconi and Galliani have emphasised that the former Ballon d'Or winner will stay with the Diavoli.
Talks over a new contract are expected to commence shortly.