The Swede, who turns 41 in October, made 23 league appearances last season as Milan powered to their first Scudetto in 11 years.
The player became a free agent last week when his contract with the club expired. However, according to reports from Sky in Italy, the striker is set for another season with I Rossoneri.
Ibrahimovic suffered a serious injury to his left knee and underwent surgery at the end of last season.
AC Milan have since revealed that recovery will take from seven to eight months, meaning the forward will be out of action for the majority of the new season.
"For the past six months I played without an ACL in my left knee," Ibrahimovic wrote on Instagram in May. "Never suffered so much on and off the pitch.
"In my mind I had only one objective, to make my teammates and coach champions of Italy because I made them a promise. Today I have a new ACL and another trophy."
It is understood that Ibrahimovic will put pen to paper on a new deal in the next few days, after agreeing to lower his wages to around £1million per year.
The club are said to view the Swede as an important figure in the side considering his strong influence in the changing room.
Nevertheless, with Ibrahimovic set to spend most of the season on the sidelines, the responsibility of scoring goals will likely fall to new signing Divock Origi who joined the club on a four-year deal from Liverpool.
The former Champions League winner will partner up with former Arsenal and Chelsea target man, Olivier Giroud.