Milan made the announcement on Monday, confirming he has penned a renewal keeping him at the San Siro until June 30 2023.
Speculation had mounted about the veteran forward’s future after undergoing knee surgery in May which would rule him out for roughly eight months.
However, the Rossoneri have shown their commitment to the three-time Serie A Footballer of the Year who netted eight league goals from 23 games last term.
Ibrahimovic played his part as Milan ended their 11-year wait to win the Scudetto last season, edging rivals Inter Milan by two points in a thrilling title race.
The Swede was regularly used off the bench, coming on as a substitute 12 times last Serie A campaign, with Olivier Giroud and Rafael Leao leading the line up front.
Milan’s Serie A triumph marked another remarkable milestone for Ibrahimovic who has won league titles with six different clubs in four different leagues.
Ibrahimovic also exited European football in 2018 when he left Manchester United for MLS club LA Galaxy but he has showed his longevity upon his return at Milan in December 2019.
The forward has scored 36 goals in 74 appearances for Milan across two-and-a-half seasons.
He is unlikely to be available to play this year, but may return early in the new year. Ibrahimovic will turn 41 in October.
Stefano Pioli’s side have added Belgian forward Divock Origi to their books this off-season, while Junior Messias has penned a permanent deal.