Gianluigi Donnarumma has done a u-turn and will now put pen to paper, on a five-year deal with AC Milan.
Donnarumma looked set to quit the Serie A side, after his agent Mino Raiola, made it clear that the 18-year-old goalkeeper will not sign a new deal.
The news alerted clubs like Real Madrid and Paris Saint-Germain.
However, Donnarumma will now extend his stay at the San Siro, signing a contract worth £5million-a-season.
He will have two buy-out clauses inserted into the deal, which depend on Milan qualifying for the Champions League. Should they fail to reach Europe’s elite club competition, the clause is believed to stand at 50m euros (£44m) but if they do, it doubles to 100m euros (£88m).
Donnarumma’s current contract runs until 2018.