The 40-year-old has spent the last two years with the Rossoneri, however, he is currently a free agent following the expiry of his contract at the end of June.
There were rumours that Ibrahimovic could retire due to a serious knee injury, but the striker looks set to continue his playing career after undergoing surgery.
According to The Sun, the forward is set to sign a new one-year deal with AC Milan that would see him remain with the Italian champions.
The report indicates that Ibrahimovic has agreed to take a pay cut to continue his playing career for at least another season.
In three spells with AC Milan, Ibrahimovic has scored 92 goals in 159 appearances. body check tags ::