The 33-year-old’s previous deal is set to expire this summer.
The veteran midfielder follows team-mates Alessandro Nesta, Filippo Inzaghi, Flavio Roma, Mark van Bommel and Thiago Silva in signing a new deal with the Rossoneri.
A short statement on the club’s official website read: “AC Milan announce that Massimo Ambrosini has extended his deal until June 30th 2012.”