Manchester City target Gennaro Gattuso has re-signed with Italian giants AC Milan.

The Italy international recently expressed his disappointment of being left out of Leonardo's first team and it is believed he was keen on a move away from Milan but he has ended any speculation of a potential shift to Manchester by signing a three-year deal at the San Siro.

A statement on the club's official website read: "AC Milan announce the player Rino Gattuso has renewed his contract with the Rossoneri club until 30th June 2012."

The deal is an unexpected one as it was understood Gattuso would meet with Milan chief executive Adriano Galliani at Christmas to discuss terms.