Leao has developed into one of the best players in Europe over the last two seasons in Italy.
The 24-year-old attracted plenty of interest from England in recent seasons but committed his future to AC Milan until 2028 earlier this summer.
Leao has helped Milan win the Serie A and reach the Champions League semi-finals over the last two seasons.
Now, the Portugal international feels it is time to take his game one step further as he eyes both individual and continental honours in the next few years.
“I stayed because they helped me to achieve my objectives, we won the Scudetto together and this club allowed me to grow as a player. I feel mature, I feel like a leader of my team,” said Leao, who changed to the Number 10 jersey this year.
“I think this is the right club to continue my career and achieve more targets, like winning the Champions League or the Ballon d’Or.”
AC Milan have added seven new signings this summer and Leao feels a greater strength in depth will benefit the Rossoneri in the upcoming season.
“I think we will have more options, especially in attack and midfield. Last season we didn’t have many alternatives and in the Champions League semi-final with Inter we suffered from the fact they were able to bring players off the bench who could make the difference.
“The direction has changed this season the club made great buys like Christian Pulisic and Ruben Loftus-Cheek. They raise the level of the squad and I am very happy to have them in the side.”