The 18-year-old came up through their youth academy and was launched into the first team at the age of 16.
“I preferred rather than to release a statement, considering the focus on the so-called Donnarumma case, that I would update you immediately on the meeting I just had a few minutes ago with Mino Raiola,” said CEO Marco Fassone in a hastily-arranged Press conference.
“Raiola informed us that Donnarumma has made a definitive decision not to renew the contract with Milan. It is a definitive decision, made by the player.
“I want to remind you all that 10 days ago (director Massimiliano) Mirabelli made a very important proposal to the player, one even stronger than the reports that appeared in the various papers.
“The player evaluated it and made some evaluations that were not just economic, but also technical and professional, and he told us that he does not wish to renew the contract, so his time with Milan will therefore conclude by June 30, 2018.
“We were taken by surprise, as we had confidently hoped Donnarumma would be the goalkeeper taking Milan into the future that we could build the team around.
“We trust that we can do our best. Naturally, the decision leaves a bitter taste in the mouth, but now we have to go forward and Milan go forward.”
The contract extension on offer was reported to be worth €4.5m per year plus bonuses, but Raiola wanted to introduce a release clause for as little as €10m if Milan failed to qualify for the Champions League.
There are now already reports that Paris Saint-Germain and Real Madrid are offering €6m salaries.