Since arriving at Fiorentina, Milenkovic has established himself one of the best young defenders of the Italian Serie A.
"I am happy and proud to have renewed my contract with Fiorentina,” Milenkovic told the official club website.
"I never asked to leave. Over the years, I received many big offers from European clubs, but I always behaved professionally, respecting this jersey and the city."
Milenkovic was said to have been pushing for move from Fiorentina but after putting pen to paper, the 24-year-old denied those speculations.
"I preferred to avoid controversy. I did not demand to leave this transfer window. I like the style of (new coach Vincenzo) Italiano and think it can improve me as a player.”
Fiorentina chairman Rocco Commisso also added;
"I didn't put Vlahovic up for sale, on the contrary, we made him an important renewal proposal," Commisso told TGR Rai Toscana on Thursday.
"There are teams interested in him but I have not set prices. I want him to stay one more year.
"For the player – we remember – in the last hours the strong interest of Manchester City has also arrived, willing to offer over 70 million euros for him.
"The pressing of Atletico Madrid, on the other hand, seems weaker after the contacts last week."
Milenkovic joined Fiorentina from Partizan in 2017, making 133 appearances across all competitions for Fiorentina as he scored 11 goals during his four-year spell in Italy.
The Serbian defender, having made his debut in December 2017 has played more minutes than any Fiorentina player as he is 11,696 way ahead of second-place Pezzella's 10,381.
Milenkovic will be expecting to help Fiorentina record clean sheet in their season opener against Jose Mourinho’s AS Roma on Sunday.
