The former Inter and Fiorentina coach arrived at San Siro in October 2019 and has helped the club back to the top of Italian football.
Pioli’s men qualified for the Champions League with a second place in 2020-21 and are still alive in the competition after five games in the group stage this term.
Pioli: ‘Milan played with quality, courage and maturity’
However, the difficulties in Europe are a stark contrast from the successful start in Serie A 2021-22, as Milan are joint first with Napoli after 13 league games.
The Diavolo lost their first match in Serie A against Fiorentina last time but bounced back with a 1-0 win against Atletico Madrid in Europe this week.
Milan have been negotiating a new deal with Pioli, who should be ready to sign for a further two seasons in Via Aldo Rossi.
Calciomercato.com reports the coach is set to pen the new deal already tomorrow, when the announcements will be made by the club.
Pioli will sign a deal worth €3.5m a season plus bonuses linked to the European cups.
Pioli: ‘Milan at the final crossroads; Renewal? We are all convinced’
CEO Ivan Gazidis has returned to Italy and has accelerated the operation, even if the parties have always been in full harmony.
Elliott Management, the owners of the club, are ready to send a signal and reward one of the protagonists in the rebirth of the Diavolo.
The outlet claims new deals for Theo Hernandez, Rafael Leao and Ismael Bennacer are also being prepared.