The 18-year-old stopped has just 12 months left on his current contract and three weeks ago his agent, Mino Raiola, told Milan that he would not be signing a new deal amid interest from the likes of Real Madrid and PSG.
The announcement led to a furious reaction from Milan fans, who showered the player with fake money and labelled him "Dollarumma" during an Italy U21 game.
However, the player now appears to have changed his mind and according to 'Sky Sports', he will sign a new deal which will make him one of the highest paid players in Italy, earning him around £100,000 a week.
Despite being just 18, the strapping stopper has already made 68 appearances for Milan, keeping 23 clean sheets in the process and played every minute of every Milan game last season.