The 24-year-old has been a standout performer for the Rossoneri this season, scoring four goals and providing five assists in 22 games across all competitions.
Chelsea are believed to have identified Hernandez as a potential January target as they seek to recruit cover for the injured Ben Chilwell, while Man City and PSG are two other teams closely monitoring the France international.
However, Calciomercato reports that Hernandez has chosen to sign a new long-term contract with Milan until either 2026 or 2027, after holding positive talks with the club's sporting director Paolo Maldini.
The report adds that Hernandez is set to earn a salary rise from €1.5m to €4m, with bonuses taking his total earnings to around €5m per year.
The former Real Madrid left-back scored a brace as captain in Milan's 3-0 Serie A win against Venezia last weekend, which moved them to within one point of league leaders and city rivals Inter Milan. body check tags ::