The agent of Stephan El Shaarawy held talks with Milan on Tuesday to discuss a new improved contract for his client.
The youngster is currently tied to the club until June 2017, but he will soon put pen to paper on a 12-month extension.
As part of that move, Milan will also guarantee him an increase in salary following his goal-packed 2012-13.
The 20-year-old, 15 goals in 24 League games this term, currently nets around €800,000 a campaign at San Siro.
El Shaarawy’s representative will meet with officials again for further talks, but reports suggest that an agreement is imminent.