I couldn't see any updates on Milan's interest in Arda. Yeah there was some news before like they were interested. But maybe after Ancelotti stated that he would stay at Real Madrid this summer, Milan might have dropped their interest. Otherwise I would be okay with watching him play for Milan as well. Because Milan are currently doing quite well in the Serie A and they would give more playing time to Arda there. 

But if Arda doesn't also want to leave then there is no need to look for a new adventure. Real Madrid is a great team when it comes to improving a young talent in every way. Even while that player isn't able to find chances very often.