After rumours the club's new owners would make a change, the Milan boss has instead signed a new contract to 2019.
Vincenzo Montella has signed a new contract with AC Milan after leading the Serie A club back into Europe.
Montella agreed a two-year deal running to 2019 in a Facebook Live event streamed by Milan on Tuesday.
The former Italy international saw Milan to a sixth-place finish in Serie A this season, earning a place in the qualifying rounds for the Europa League, despite winning only one of their last seven league games.
There had been reports Milan's new owners, Rossoneri Sport Investment Lux - owned by Chinese businessman Yonghong Li, would seek to appoint a new head coach.
But Montella has been given the chance to oversee the new era at San Siro, with centre-back Mateo Musacchio already snapped up from Valencia on a four-year deal for a fee reported to be around €18million.
Milan picked out European qualification, a late equaliser against rivals Inter and a win against Bologna with nine men among the reasons Montella has been handed a new deal.
"After a positive season managing a great group, the club and Vincenzo Montella are ready to continue working together, renewing the contract of the Rossoneri manager," the club statement read.