The deal with the carrier owned by the government of Dubai, will run from July 2010 until June 2015.
The contract also includes various bonuses related to on-field success, Milan said on its website.
"This decision shows that the Milan brand and the quality we offer continues to attract the most dynamic and innovative companies in the world," said Milan vice-president Adriano Galliani.
Milan become the fifth team in five different countries to carry the Emirates logo on their shirts alongside Arsenal (England), Paris St Germain (France), Hamburg (Germany) and Olympiakos (Greece).
However, unlike Arsenal, Milan will not be naming their stadium after their sponsors.
"San Siro will stay San Siro and will not become the Emirates Stadium," insisted Galliani, the number two at Milan to Silvio Berlusconi, the Italy Prime Minister.
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