AC Milan's Italian coach Stefano Pioli gestures during the Italian Serie A football match AC Milan vs Bologna played behind closed doors on July 15, 2020 at the San Siro Stadium in Milan. (MARCO BERTORELLO / AFP)

ROME - Stefano Pioli will remain head coach of AC Milan as the Rossoneri confirmed on Tuesday that the 55-year old had penned a two-year extension to 2022.

Stefano Pioli took over at AC Milan last October on a short-term contract that was set to expire at the end of the season

The former Fiorentina and Inter Milan coach took over at Milan last October on a short-term contract that was set to expire at the end of the season.

"AC Milan announces the completion of an agreement with Stefano Pioli for a two-year deal extension of his contract as Head Coach that will now expire on June 2022," read a statement.

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The Milanello had long been linked with Ralf Rangnick of RB Leipzig, but Pioli's renewal quashed rumors that the German may be set to take the reigns at the San Siro.

"I am delighted with this agreement, Stefano has shown he can deliver the vision of football we have for our club - exciting, progressive and passionate," said the club's CEO Ivan Gazidis.

"This is not a decision based on recent victories, but one based on how Stefano has built team spirit and unity of purpose, the way he has improved the performances of the individual players and the collective team, the way he has embraced our vision and the way he has represented himself and the club's values," he added.

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Pioli said: "I am happy and proud of the trust I have received from AC Milan. I want to thank everyone, including our fans, who we are really missing at the stadium, but are always close and supportive. As I have said many times, our future is today: We must be focused and determined, be united and play as one. We are at the begining of an extraordinary path. If we keep working this way, we will grow and be more and more competitive."