The 40-year-old joined the Italian giants from Real Madrid as a free agent last summer, ending his incredible 13 spell at the Santiago Bernabeu.
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Despite his age, Modric was a key player for AC Milan over 2025-26, popping up with two goals and three assists in his 37 games across all competitions.
According to Fabrizio Romano, Modric has now verbally agreed a new ‘short term’ contract with the Serie A side following a conversation with new manager Ruben Amorim.
The Croatian midfielder decided against retiring and is now expected to put pen to paper in the coming days.