For much of the season Allegri has been considered a certainty for the sack but after a meeting between Berlusconi and vice president Adriano Galliani it was decided to keep the Italian.
“The relationship with the coach, which has never been interrupted, continues with confidence and in absolute and mutual respect,” Berlusconi said in a statement on Milan’s website (www.acmilan.com).
“We had a cordial and frank discussion with Galliani and Allegri in which we looked over and analysed last season and clarified a few things.”
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.