The 20-year-old's role in the squad is said to be under threat following the signings of Kaka and Alessandro Matri, with Manchester City were reportedly considering a big-money move for him.
However, after joining up with the Italy national team ahead of World Cup qualifying encounters with Bulgaria and the Czech Republic, El Shaarawy has ruled out a departure.
"I’ve decided to stay at Milan," he told Sport Mediaset. "I have made a precise decision and, no matter what offer arrives, I want to stay at Milan.
"There's more competition in the squad now, but there will be playing time for everybody. I'll fight for my place in the team."
El Shaarawy scored 16 goals in 37 league appearances last season, but struggled for form in the second half of the Serie A campaign following the arrival of Mario Balotelli.
The forward has been capped by his country on 10 occasions and has scored once at international level.
