AC Milan release statement amid reports of contract talks collapsing with Chelsea and Manchester City target - Reports

AC Milan have released a statement strongly denying reports that contract talks with Chelsea and Manchester City target Rafael Leao have collapsed. The Portuguese attacker's current deal at the San Siro has a year remaining.

Italian outlet La Gazzetta dello Sport has reported that Leao could leave Milan due to a frosty relationship with the club. However, the Rossoneri have quashed those suggestions in a statement released on their official Twitter account:

"With regard to the article published today by the newspaper La Gazzetta dello Sport entitled: 'Leao Milan total rupture', AC Milan would like to clarify that the negotiations with Rafael Leao have not been interrupted."

They continued:

"Negotiations with Leao have not been interrupted. Alleged frost between parties is not only totally unfounded but harmful to the Club and its player. Milan continues dialogue with Leao and his entourage."

Leao himself has responded to reports over his potential dissatisfaction with life at the San Siro in a post from transfer expert Fabrizio Romano. It included the same statement that Milan released.

Both Chelsea and Manchester City have been attributed with holding an interest in the 23-year-old. Despite this, Leao expressed his admiration for Premier League leaders Arsenal.

The Portuguese attacker has featured 27 times across competitions, scoring nine goals and providing nine assists. The young forward can play as a wide forward and in a central striker's role. He joined Milan from LOSC Lille in 2019 and has scored 36 goals and contributed 30 assists in 142 games.

Chelsea have been keen on signing Leao as they look to add more goals to a side failing in front of goal. Graham Potter's side are 10th in the league and trail fourth-placed Manchester United by 10 points. Meanwhile, Manchester City have earmarked Leao as a potential attacking option and have even reportedly considered offering Jack Grealish in the opposite direction.

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Manchester City considering deadline day move for Chelsea's Ben Chilwell

Chelsea's Chilwell is a reported target for Manchester City.

Manchester City have allowed Joao Cancelo to join Bayern Munich on a loan deal with a £61 million buy option. The versatile Portuguese fall-back has fallen out of favor with Pep Guardiola this season.

According to the Sun, City are eyeing Chilwell as a potential replacement for Cancelo on transfer deadline day (January 31). They were interested in signing the English left-back before he joined Chelsea in 2020 for £42 million.

Chilwell has endured an injury-ridden season, making 14 appearances, scoring one goal and providing two assists. It seems unlikely that the Blues will allow him to leave, as Marc Cucurella has failed to impress since arriving at Stamford Bridge. Moreover, Potter's side are eager to start climbing back up the table and will need their squad to boast depth.