The 35-year-old was only tied to the Serie A club until June, but he has now put pen to paper on a new agreement until 2014.
“I’ve renewed for one more season,” the former Italian international told Mediaset Premium. “I’m very happy that I will be able to continue my adventure here.
“Milanello is my home.”
Abbiati featured in 28 of the Rossoneri's 38 league games this season. He also appeared in seven Champions League matches and one Coppa Italia game.
Abbiati joined Milan in 1998 from Monza. He spent loan spells at Juventus, Torino and Atletico Madrid in the mid 2000s, before returning to the Rossoneri in 2008.
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