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Gattuso signs new Milan deal

Italy midfielder Gennaro Gattuso has ended speculation over his future by signing a new contract at AC Milan, the Serie A club have confirmed.

Gattuso had been linked with a move to the Premier League, in particular Manchester City, as he was said to be unhappy with his first-team opportunities under Rossoneri coach Leonardo after battling injury.

Milan chief executive Adriano Galliani acknowledged Gattuso could leave but the club have now confirmed the 31-year-old would be remaining in Milan for the next three years.

"Milan announce that the footballer Rino Gattuso has extended his contract with the club until 30 June 2012," said a statement on the club's website.

Gattuso has spent the last decade with Milan after spells with Perugia, Rangers and Salernitana early in his career. He also has 70 caps for Italy and was a member of the World Cup winning squad in 2006.

Meanwhile, Milan have played down suggestions that they will make an offer for Wolfsburg striker Edin Dzeko when the transfer window reopens.

Dzeko is known to be keen on a transfer to San Siro after emerging as one of the finest players in the Bundesliga in the past 12 months but despite rumours that a number of English clubs are interested, Milan will not be making a move, according to Galliani.

"We are looking for an out and out attacker," Galliani said. "We like Dzeko, but he doesn't have the characteristics we are looking for."

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