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.
Think you know your Italian football? Share your knowledge, tips and comments to win cash prizes in OLBG's tipster competition  - £5,000 monthly.