Chelsea and Manchester City monitoring the situation of 23-year-old Portugal international: Reports

Manchester City and Chelsea are reportedly monitoring the contract situation of Rafael Leao at AC Milan. Both clubs are keen on snapping up the Portuguese forward, whose contract at the San Siro expires in 2024.

The forward is yet to sign a new deal at the club, but talks are ongoing behind the scenes as both parties are keen to resolve the issue. As per a report in Tuttomercatoweb, Chelsea and Manchester City are the ones keeping a close eye on the situation.

However, The Telegraph reported that the Cityzens' plans could change following the charges levied on them by the Premier League on Monday (February 6).

Pep Guardiola's side are now falling behind in the race, and Chelsea could have a clear path should a new contract not be agreed upon on time.

Former Blues defender Glenn Johnson was impressed with Leao's display at Stamford Bridge earlier this season in the UEFA Champions League. He urged manager Graham Potter to sign the forward. He told Betting Odds:

"Stamford Bridge is not an easy place to go and play, but he [Leao] was one of the standout players for Milan. Nobody's cheap these days, but if you can get a player like him for a sensible transfer fee, then he'd suit Graham Potter's team down to a tee."

Leao has registered nine goals and nine assists in 28 games across competitions this season.

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AC Milan keen to keep Chelsea and Manchester City target

AC Milan are aware of the interest in Rafael Leao and are working on a new contract. Zlatan Ibrahimovic, meanwhile, has urged his teammate to stay at the San Siro as he believes it is the best place for the forward.

Speaking to Sky Sports, he said:

"Of course, Milan is the right environment for him. Just look at his growth. When he arrived, he was far from the decisive player he is today. Here he is very important for us, elsewhere would he be as important? He would have to start from scratch, you can't be sure he would be ready right away."

He added:

"At Milan he has confidence, space and freedom, which is not a given at another club, it's up to you. Besides, you can see that he is happy here, by now he is laughing even before scoring. He is the young man who has grown the most."

AC Milan boss Stefano Pioli has also told the Chelsea target that he should consider penning a new contract. He told Sky Italia earlier this season:

"I advise him to sign a new deal and stay at Milan. I see Rafa very happy here. [Here we would] have the chance to improve again, he feels good at Milan with this group."

Chelsea have been tracking the forward for over a year, while Arsenal and Real Madrid have also been linked with the forward.