Rafael Leao Closes In On New AC Milan Deal Despite Interest From European Giants
Real Madrid are set to miss out on Rafael Leao as the AC Milan star closes in on a new deal.
Louis Fargher
Updated on 21 January 2026
Rafael Leao is set to sign an extended deal with AC Milan during the 2025/26 season despite a reported interest from Real Madrid.
Rafael Leao Closes In On New AC Milan Deal
The Portuguese soccer star is closing in on a monstrous new deal at AC Milan, as Rafael Leao finds a new lease of life with the Rossoneri.
Leao has been one of AC Milan’s star performers this season, contributing to 10 goals in 17 appearances (all competitions) and recently attended the club’s training ground despite being granted a day off.
This commitment to the cause shows how Leao’s feelings towards Milan have changed under Massimiliano Allegri, as the 26-year-old was linked with a move away during the summer.
Milan tied Leao down for another five-years in June 2023, meaning the Portuguese star is under contract until 2028 – but the forward is looking for an improved salary.
The Rossoneri are hoping to keep a hold of their star players as Ruben Loftus-Cheek attracts interest from Aston Villa and Milan may need to offer Leao a major pay-rise to avoid any chance of a sale.
Leao is reportedly earning €6.4million per year (before bonuses), which is less than Adrien Rabiot, Christopher Nkunku and Luka Modric – as the French duo are earning around €9.2m.
The Portuguese international is looking to earn around €10m per year and become the club’s highest paid player and this mindset is also being shown by Christian Pulisic.
The USMNT star has been in discussion over a new deal for multiple months and is unwilling to sign any deal that does not bring a substantial pay-rise.
Pulisic and Leao are undoubtedly Milan’s most important attacking options, which has seen both players attract interest from across Europe.
Real Madrid Target Rafeal Leao
Los Blancos have endured a turbulent 2025/26 campaign so far, as Xabi Alonso was made surplus to requirements after just 34 matches in charge and was replaced by Alvaro Arbeloa.
Alonso’s reported conflict with Vinicius Junior played a major part in Madrid’s decision, but this rift also started rumors over a move for Rafael Leao.
The AC Milan star has a €175m release clause, which is a clear deterrent in any pursuit, however, Leao’s new deal is set to see a more realistic clause.
Dropping this fee could reignite Madrid’s interest as Los Blancos are reportedly willing to let Vinicius Junior go and search for a suitable replacement.
Madrid are also approaching Como over a buy-back deal for Nico Paz despite Inter Milan’s interest and this could play a major role in Leao’s future.
However, Madrid’s interest could fall on deaf ears as Leao is reportedly ready to stay in Milan for multiple years and is not looking to part ways with the Rossoneri this year.
Louis Fargher
Louis has been an avid soccer enthusiast for multiple years and boasts knowledge across several leagues in Europe - including Serie A. Louis holds a degree in Soccer Journalism and has produced content for multiple clubs in the United Kingdom.
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