Milan have been linked with the Spain international, but he told Radio Marca: "It would be difficult for me to go to Milan. It is important for me to be happy and satisfied in the place where I play and I am happy in Madrid.
"Although I am pleased that Milan are interested in me."
Ramos added: "Of course I would like a better contract. Some of my teammates earn more than I, but I understand that because they've been here longer."