Milan to extend coach Allegri's contract

Milan: AC Milan coach Massimiliano Allegri's contract will be extended, according to club owner Silvio Berlusconi.

Allegri's current deal expires at the end of this season, but Berlusconi said the club will follow up on a promise made in August and extend it through to the 2013-14 season.

"Allegri's contract extension is not in question," Berlusconi said on Wednesday at Milan's Christmas party. "It must be done and it will de done. ... There's just a few contractual details to be sorted out that don't concern me. They're working on it."

Allegri led Milan to the Serie A title last season in his first year in charge. The club are currently two points behind co-leaders Juventus and Udinese.

Milan can move into first place, at least temporarily, with a win against Siena on Saturday.

Berlusconi also delivered an ultimatum to troubled Manchester City striker Carlos Tevez, who Milan are trying to sign amid competition from Paris Saint-Germain.

"Tevez has to decide between two solutions," Berlusconi said. "Either he chooses prestige or he chooses money. Milan represent prestige, the possibility to be seen throughout the world and to win the Ballon d'Or. PSG, who represent Qatar, offer the possibility of a huge financial income. He has to choose."

City manager Roberto Mancini has been feuding with Tevez since the Argentina international refused to warm up during a Champions League game against Bayern Munich in September. Tevez has not played for the club since the incident, after which City fined him and suspended him for two weeks.

PSG sporting director Leonardo, however, denied PSG are in the running for Tevez's signature.

"We have never made an offer for Tevez, neither to him nor the club," Leonardo said. "At the moment Paris Saint-Germain are active in the transfer market so it's normal to talk about a player who won't stay at Manchester City and there's very few teams that can afford him."

"We're one of the few that can buy a player like him and so that's why people have begun to say we're after him. But we've never made an offer to him or the club."