LOS ANGELES — David Beckham is coming back to the Los Angeles Galaxy in July.

The English midfielder will remain on loan to AC Milan through the end of the Italian team's season, which concludes May 31.

But it's going to cost Beckham to stay overseas. He and AC Milan are jointly paying the Galaxy in a "multimillion dollar deal" to extend his loan, the Galaxy said in a statement issued late Saturday night.

On Sunday, Milan issued a statement confirming the move a few minutes before its game with Atalanta.

"AC Milan announces that the player David Beckham will remain with the Rossoneri until June 30, 2009," the statement said.

Financial terms of the arrangement were not disclosed. The Galaxy had sought $10 million for the outright purchase of Beckham, but AC Milan officials had offered $3 million.

The two sides were negotiating for weeks and reached agreement on the loan extension hours before it was due to expire after AC Milan's game with Atalanta.

"I'm really grateful to the L.A. Galaxy and AC Milan for making this dream deal happen," Beckham said in the statement.

"It allows me to play for AC Milan and the L.A. Galaxy in the same year, and also to continue my commitment to develop soccer in the United States, which is something I am passionate about."

The announcement came three weeks after Major League Soccer commissioner Don Garber's Feb. 13 deadline to resolve the situation.

At the time, Tim Leiweke, president and chief executive of the Galaxy's parent company AEG, had said the negotiations were over and that Beckham needed to return to to Los Angeles and end the distraction.

Clearly, AC Milan officials were operating on their own timetable.

"Much has been written and said but all along it has been our intention to keep David Beckham as a member of the Los Angeles Galaxy," Leiweke said in the statement.

"We are pleased he is returning and at the same time, we feel it is important to allow him to finish his run in Milan, as it has been a remarkable run."

Going into Sunday's game, Beckham had scored two goals in 11 games for Milan and looked to be in his best form since leaving Real Madrid two years ago.

The 33-year-old former England captain repeatedly said he wants to stay with Milan to improve his chances of making his country's team for next year's World Cup and described his experience there as "incredible."

Beckham has a five-year contract with MLS worth $32.5 million, and it includes a clause that would allow him to leave at the end of this year.

Leiweke was traveling to Europe over the weekend and was unavailable for comment.

The Galaxy opens the MLS season on March 22. Beckham won't become eligible to play in league games until the international transfer window reopens on July 15.

That means Beckham's first game with the Galaxy will be July 16 against the New York Red Bulls at Giants Stadium, which will be moved up two days from its original date on the league schedule.

The change is necessary to accommodate another part of the deal, an exhibition between AC Milan and the Galaxy at Home Depot Center in Carson on July 19.

Beckham won't count against the Galaxy's 20-man senior roster until he returns to the club in July, nor will he count against the club's salary budget until his return.

"I am confident that his presence will strengthen our roster in the last half of the season as we push for a playoff position," Arena said in the statement.

Beckham said his family is happy and will remain in Los Angeles.

In a move to accommodate fans who endured the back-and-forth speculation on Beckham's future in Los Angeles, the team said it will cut ticket prices by an average of 10 percent.

Refunds, in the amount of the rollback, will be issued for anyone who has already purchased season or individual tickets, the team said.

Beckham said his ideal scenario for the year would be to help Milan reach the Champions League and for the Galaxy to make the playoffs and win the MLS Cup.

But the Galaxy hasn't come close to postseason play since Beckham arrived with ankle and knee injuries amid much hoopla in July 2007.

He had no goals and two assists as the Galaxy finished with a 9-14-7 record that was third-worst in the league. Last season, Beckham had five goals and 10 assists, but the Galaxy's 8-13-9 record tied for the worst in MLS.

Beckham was injured last season, when he left the Galaxy at various times for appearances with England's national team.

Beckham's greatest impact in America has come at the turnstiles.

The Galaxy's average home attendance last season was up by 24.9 percent since 2006, and the league's attendance increased 6.9 percent during the same period. Average ratings of games on ESPN in which Beckham played rose by 23 percent.