The 20-year-old had been linked with Arsenal and the likes of Manchester City and rivals Manchester United, but Milan announced on Thursday afternoon that the forward has signed a new long-term deal.
El Shaarawy's agent confirmed last year that there was interest from Arsenal, and manager Arsene Wenger recently admitted that the youngster would be a great signing.
Wenger had been asked before the January transfer window if El Shaarawy was a possible transfer target and had told Eurosport: "You never know."
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