A statement on the club’s official website read:
“Stephan El Shaarawy and Milan have prolonged their professional relationship with a signature that arrived today.”
After signing the extension, the 20-year-old-striker took to Twitter to express his delight at staying in Milan for at least an extra season:
“I am happy for this renewal,” he posted on his official Twitter account. “I have extended my contract until 2018.
“I am happy and proud to wear this shirt.”
After a slow start to his career, El Shaarawy has bursted on the scene this season scoring 18 goals in all competitions and making his full international debut in a friendly against England in August.
When Milan suffered their worst start to a Serie A season in decades, losing six of their first 12 matches, El Shaarawy single handily kept Milan out of the relegation zone with 14 league goals before the new year.
The January arrival of his international team-mate Mario Balotelli from Manchester City has seen El Shaarawy take a more auxiliary role in attack, but his goal in Sunday’s Milan derby ensured a point from a 1-1 draw with Inter.
Last week, El Shaarawy provided the crucial pass for Sulley Muntari to score the second goal as Milan beat Barcelona 2-0 in the first leg of their UEFA Champions League last-16 tie.