Galaxy's chief executive Tim Lieweke felt the delay in agreeing a deal was due to Milan's reluctance to meet their demands, but is happy with the compromise which has been reached.
"I'm sorry that it had to go on so long, for him and for us and particularly for our fans," Leiweke, who confirmed Milan will play the Galaxy in July, told the Los Angeles Times.
"Milan thought, 'Hey, David wants to do this, so we don't need to do anything'. We had to get to a point where they understood that David doesn't own this contract, the Galaxy does, and this isn't going to be just about 'Let's make David happy'.
"That was where the complication was. Milan needed to understand we weren't just going to turn around and say, 'Oh, yeah, no problem, keep him for a couple more months'.
"I think after some conversations between us and David and his folks, David began to understand that he didn't want to leave the league either.
"So this is a good solution. It allows him to finish the season with Milan. We will see him in July. I'm very excited about the Milan game."