The Portugal international, 24, has been heavily linked with a move away over the past few years, although transfer talk has died down in recent months amid injury problems and a downturn in form.
Leao has three goals and five assists in 19 Serie A appearances so far this season, while he has not found the back of the net in his last 14 league games.
In fact, Leao’s three Serie A goals in 2023-24 all came in consecutive games in September; he has not scored in domestic action since.
Despite this, Milan are set to ask for his release clause to be paid in full this summer, according to Football Italia.
Leao has reportedly been informed of PSG’s interest, with Luis Enrique’s side eyeing up a move for the Portuguese winger amid Randal Kolo Muani and Goncalo Ramos’ struggles at the Parc des Princes.
Furthermore, Kylian Mbappe has also been linked with an exit, amid Real Madrid interest, with his contract due to expire in June.
Rafael Leao to join PSG or Newcastle?
Arsenal and Chelsea have both previously been linked with a move for Leao, with the former deemed to be the most likely club to sign him in 2023.
However, the Gunners now face serious competition from PSG and Newcastle, according to Telefoot.
The Magpies are reportedly concerned about meeting FFP requirements, which makes their pursuit slightly bizarre, but Leao would add more star quality to a team lacking attacking depth.
Despite this, Anthony Gordon has excelled on the left flank this season and would be required to swap wings in order to accommodate Leao. This may not pose a problem, but it could see the Englishman’s influence at St James’ Park diminish.
Furthermore, Leao would likely cost a club record fee if Newcastle’s interest is serious. Alexander Isak is currently the club’s most expensive signing of all time, courtesy of his €70m transfer from Real Sociedad in 2022.
However, Newcastle would need to smash this figure to land Leao, something that seems extremely unlikely given their FFP concerns.
As a result, PSG is a more likely destination, although Milan will fight tooth and nail to retain the services of their star man.