Milan keeper Dida has signed a new contract at the club tying him down to the Rossoneri until 2010.Dida's existing deal was set to expire in the summer and there had been some disparity between the club's offer and player's demands. Milan had also been linked with moves for Juventus keeper Gianluigi Buffon and Celtic's Artur Boruc.
However, the 33-year-old Brazil man has decided to stay at Milan, ostensibly until the end of his career, having spent the last six years at the club since joining from Corinthians in 2000.
Milan face runaway Serie A leaders and city rivals Internazionale on Sunday.
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