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After months of speculation and negotiation, the 44-year-old has put pen to paper on a new deal with the side he led to the Scudetto last season

AC Milan have announced that coach Massimiliano Allegri has finally signed a new contract with the club.

The Italian's old deal had been set to expire in the summer and, as negotiations with Rossoneri CEO Adriano Galliani dragged on, speculation began to mount that the former Cagliari boss could leave San Siro at the end of the season.

However, Milan confirmed on Friday, just two days before the Derby della Madonnina, that the two parties had reached agreement over a new contract which will tie Allegri to the club until June 30 2014.

Allegri, who led the Rossoneri to the title last May in his first season at the helm, had always maintained that he wanted to remain at San Siro.

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