The Swede ahead returned to his old club last year after spending a year at MLS with LA Galaxy.
Ibrahimovic, who scored 10 goals in 18 Serie A games, had a chance to extend his contract.
According to Sky Sports, the 38-year-old will settle for a year in Milan and his salary reportedly expands to £40,000 per week.
Speaking about his return pass to Italy on Saturday night, Ibrahimovic said: “Finally, everything is in position and I can nevertheless go back to where I feel at home. “
He then told the Milan website: “As I said, I’m not here to be a pet.
“I’m here to bring effects and help the team, the coach and the team get back to where Milan is.
“We had six wonderful months but we didn’t win anything.
“This year I’m lucky enough to be here from the beginning, so we have to keep going as we were, running hard and sacrificing ourselves for our goals. “
Ibrahimovic helped Milan to a sixth position and a position in the Europa League this season.
And on his return to San Siro, it turns out he has shown that his shirt number will go from 21 to 11.
During his first trip to Milan, between 2010 and 2012, he wore the number 11 shirt.
And in a video posted on Instagram the attacker appeared a new logo of the blouse with the same number.
In his first time at Manchester United, Ibrahimovic weared number 9.
But then he moved on to number 10 the following season after Wayne Rooney left.
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