AC Milan president Silvio Berlusconi has confirmed Massimiliano Allegri will remain with the club as coach despite the team only finishing third in Serie A this season.

Allegri guided Milan to the league title during his first season in charge in 2010/11 and to a runners-up spot in the 2011/12 campaign, but with Milan dropping another spot speculation has been rife that the coach could be headed for the exit door.

However, following a meeting between AC Milan president Berlusconi, Allegri and vice-president Adriano Galliani on Sunday, it has confirmed the 45-year-old coach will stay in charge.

"We had a frank and cordial discussion with Galliani and Allegri in which we revisited and analysed last season, and there was clarification on a few things," Berlusconi told www.acmilan.com.

"We reached an agreement on rights and obligations of the club to the coach and the coach to the club.

"Moreover, we also talked about the kind of game Milan will have to play next season and guidelines were drawn for the next transfer market.

"The relationship with the coach, which has never ceased, continues with absolute trust and mutual respect."