His performances have seen the 23-year-old hold onto a first-team berth under Vincenzo Montella despite Milan's vast spending on attacking players in the recent transfer window.
And while he had been linked with reported interest from Tottenham, Suso has now been further rewarded with a deal that keeps him at San Siro for the next five years.
"AC Milan are delighted to announce that Suso has extended his contract with the club through to 30 June 2022," a statement on the club's official website read.
"We've been waiting for this day for a long time, all agreeing on the outcome. Now the contract has been signed, it's official.
"This is great news for all the Rossoneri fans, and for one of the best players in the past season."