Rafael Leao reportedly has strong chance of leaving AC Milan as replacement plans emerge

Rafael Leao has been one of AC Milan‘s standout performers in recent years, but his future at the Italian club has reportedly been called into question over the past several days. With a potential replacement already being discussed internally, the Portuguese star’s situation figures to come to a head in the upcoming transfer window.

As reported by Sky Sports‘ Maurizio Compagnoni, there is a real chance Rafael Leao departs AC Milan in the summer transfer window at the end of the 2025-26 season. The uncertainty stems from the fact that both the club and the player have been unable to reach an agreement on a contract extension.

Leao’s current deal runs through June 2028, but with Milan simultaneously working on renewals for stars like Christian Pulisic and Mike Maignan, his situation is one the club is also eager to resolve. Talks have been underway for several months, with the Italian side tabling a proposal that would keep him at the club through 2030 or 2031.

Through 24 appearances in the 2025-26 season, Leao has contributed 10 goals and two assists. Even so, the Portuguese has been operating below his best, in part because head coach Massimiliano Allegri has deployed him in a more central role as a finisher rather than as an orthodox winger, limiting the one-on-one opportunities in which he has traditionally thrived.

Rafael Leao of AC Milan competes for the ball with Manuel Akanji of FC Inter.

As reported by La Gazzetta dello Sport and other Italian outlets, Arsenal and Manchester United have emerged as the clubs most interested in signing Leao. However, his Transfermarkt valuation of 65 million euros, combined with a reported release clause of 150 million euros, represents a significant obstacle to any potential departure.

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An Argentine striker as the main candidate

Allegri has typically preferred more physically imposing strikers, in the mold of Santiago Gimenez or Niclas Fullkrug, over quick, dribble-heavy wide forwards in the mold of Leao. That stylistic tension has been one of the factors behind the underperformance of the Leao-Pulisic combination compared to previous seasons, and a new name has now surfaced as Milan’s primary attacking target.

As reported by Sky Sport Italia, Bologna striker Santiago Castro has emerged as the leading candidate to join AC Milan. The Argentine fits Allegri’s preferred profile well, offering not only the traits of a traditional center forward but also the ability to link up play effectively, as evidenced by his team-leading nine goal contributions this season, seven goals and two assists.

Even so, Castro arriving in Milan remains more hypothetical than concrete at this stage, with only reported interest and no contact between the clubs yet. Prizing him away from Bologna would likely cost between 40 and 50 million euros, a sum that Milan are not currently in a position to commit.