The 39-year-old leads the club with 15 goals and has two assists in 17 appearances in Serie A this season. The club sits in second place in the Italian table, 10 points behind Inter, with six matches remaining.
It would be AC Milan's first top-four finish in Serie A since 2012-13.
Ibrahimovic is in his fourth season total with AC Milan and has scored 84 goals in 130 appearances with the Rossoneri. He helped the club win the league title in 2010-11 during his first stint and returned last year after playing two seasons for the Los Angeles Galaxy in MLS.
The Swedish striker has an incredible resume that includes time spent in the biggest clubs in the world, like Manchester United, Barcelona, Juventus, Inter and Paris Saint-Germain. He has won domestic titles in Ligue 1, Serie A and La Liga with 13 first-place finishes in all.
He has also made UEFA's Team of the Year four times.
Deep into his professional career, Zlatan remains a difference-maker on the pitch who can come through with a goal at nearly any moment.
The latest deal will keep him with AC Milan past his 40th birthday in October.