The Rossoneri have produced fine results recently as they climbed to fourth place in the Serie A table and advanced to the UEFA Champions League semis where they will face Manchester United.
Italian tactician Ancelotti pleaded with Milan board to earn him a new contract following his side's 5-2 victory over Ascoli in the Serie A on Wednesday.
Speculations linked Milan with a move to World Cup winning boss Marcello Lippi, which looks now increasingly unlikely after Galliani's statement.
"I think he will stay for a long time, but I don’t believe there is the need to sign a new contract a year and a half before the current one expires," Galliani told Sky Italia.
"He has a contract until next season [June 2008] and there will be time to renew it."