The Italy international's previous deal had been set to expire at the end of June but he put pen to paper on a new four-year contract on Thursday.
"It's a signature that fills me with pride," Abate wrote on Twitter.
"Ten years at Milan is an honour. Day after day, Rossonero forever. Thank you.
"Abate came through the Rossoneri's youth team ranks before first breaking into the senior squad in 2003.
The right-back had loan spells at Napoli, Piacenza, Modena, Empoli and Torino before establishing himself in the Milan starting line-up in 2009.
The 28-year-old made 23 appearances last season as the Rossoneri finished a disappointing 10th in the Serie A standings.
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