The 18-year-old, who moved to Italy in 2012, scored just one goal in 24 appearances last season, but the Frenchman has quelled suggestions that he could depart the San Siro.
He told L'Equipe: "I'm happy at Milan and I want to stay. I know what I can give to the team and I don't fear the competition for places.
"I can play as a striker, on the left or right, I'll play wherever coach Massimiliano Allegri needs me. I know that I have the qualities to make an impact with this club."
Newcastle United have been linked with a move for the teenager.