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Milan are set to confirm Gennaro Gattuso as their new permanent manager on Thursday amid reports of an agreement over a three-year deal for the Italian.

Calciomercato and Fabrizio Romano have reported that the ex-Rossoneri star will remain in the dugout at San Siro for the 2018/19 campaign after his camp and the Serie A outfit shook hands on the terms of a contract extension for Gattuso.

The deal, which is said to have been a 'formality', has had all the small print ironed out after Milan sporting director Massimiliano Mirabelli gave his blessing to the contract ahead of Wednesday's 0-0 draw between Milan and their bitter city rivals Inter.

Gattuso is expected to officially sign his new deal in the coming hours and commit his immediate future to Milan until the summer of 2021 on wages of around 2m euros a season.

Gattuso has revitalised Milan's prospects in the Italian top flight after a below first part of the 2017/18 campaign under Vincenzo Montella.

Despite spending vast amounts of cash in an effort to challenge for the league crown this term, Milan found themselves well off the pace in Serie A and struggling to remain in the Europa League before Montella was sacked on 27th November.

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Gattuso was placed in immediate temporary charge of first-team affairs after impressing at the helm of the club's Under-19s side and has performed admirably in his new role.

The 40-year-old has led Milan to 14 wins and five draws in 25 matches - form which has moved them up to sixth in the league standings and took them to the last-16 of the Europa League before they were eliminated by Arsenal.

Gattuso and Mirabelli are said to have had a verbal agreement over extending the former's stay at Milan and, after weeks of speculation, it appears that the former midfield enforcer will remain in place with the club he's most associated with.