The 24-year-old has been heavily linked with a move to United in the past, and particularly over the summer as doubts continued to surround the future of Reds ace Paul Pogba.
The Serbian has the potential to fill any hole vacated by the departure of Pogba, but, after United managed to keep hold for another season, a move for the Lazio star never materialised.
It was thought that Milinkovic-Savic would leave Lazio, even if he did not end up at Manchester United.
Club such as Paris Saint-Germain, Juventus, AC Milan and Inter Milan were also keep tabs on him, but he is now set to snub them all by penning a new deal with the Rome-based outfit.
In fairness the player has always said he is happy with Lazio and has never pushed for a move away despite all the interest in him.
"I never said I wanted to leave Lazio, I feel good here," he said. "I never mentioned a possible transfer to Manchester United and it was just paper talk. New commitments await me with Lazio."
Milinkovic-Savic is already tied to the club until 2022, but the new deal will extend that by a further year and of course include a hefty pay rise compared to what he is on at the moment.
The contract also includes performance-based performances to keep the player sweet and motivated.
However, the new contract does not necessarily mean the end of United's chances of signing him, if they did need a replacement for Pogba.
Reports also claim there is a 100milliion euros release clause in the contract that United could activate if they really wanted to get him on board.