Manchester City, Chelsea to lodge €120m January bids for AC Milan's Rafael Leao?

Manchester City and Chelsea are reportedly planning to make offers of €120m (£105m) for AC Milan forward Rafael Leao in January.

The 23-year-old has elevated his game to new heights with the Rossoneri over the last 18 months, and he is set to become one of the most sought-after forwards in Europe when the transfer window re-opens.

Leao was named the 2021-22 Serie A Player of the Season after scoring 11 goals and providing 10 assists for Scudetto champions Milan, and he has since made a bright start to the new campaign, recording six goals and nine assists in 17 games across Serie A and the Champions League.

The Portugal international is regarded as a key asset at San Siro, but his long-term future at the club is believed to be uncertain as his contract is set to expire in June 2024.

A recent report claimed that Milan are planning to hold talks with Leao and his representatives over a new deal as they look to fend off interest from Europe's elite clubs.

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However, TuttoMercatoWeb claims that Milan are expecting to receive big-money January offers of €120m (£105m) for Leao from Premier League duo Man City and Chelsea.

The report adds that Milan will consider cashing in on the forward if a 'super offer' is received, as they do not want to lose another valuable star on a free transfer.

Over the last 18 months, the Rossoneri have seen Gianluigi Donnarumma, Hakan Calhanoglu and Franck Kessie all leave the club upon the expiration of their contracts, the latter of whom joined Barcelona in the summer.

The report also states that Milan will look to improve 'all departments' of Stefano Pioli's squad if they decide to sell Leao, with RB Leipzig duo Dani Olmo and Dominik Szoboszlai among their list of targets.

Leao is said to have been admired by both Man City and Chelsea for some time, with the West Londoners expressing their interest earlier than the Citizens.

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Milan sporting director Paulo Maldini confirmed last month that the Italian club rejected a "verbal proposal" from Chelsea over the summer.

"Chelsea haven't sent any official bid for Leao – but they made a verbal proposal... and we rejected, of course," Maldini told reporters via journalist Fabrizio Romano.

"He knows that staying here is the best way to improve. We want to do great things with Rafa Leao in our project."

The Blues are expected to reignite their interest in Leao in the winter window, and they are allegedly prepared to include a fringe player such as Armando Broja, Christian Pulisic or Hakim Ziyech – who are all of interest to Milan – in an attempt to lower the overall cost of the deal.

Man City are set rival Chelsea for Leao's signature, though, and they are said to view the 11-cap Portugal international as a potential replacement for Raheem Sterling, who was sold to the West Londoners in the summer.

Manchester United and Paris Saint-Germain have also been credited with an interest in Leao, who is in contention to feature for Milan in Saturday's Serie A clash at home against Spezia.