Chelsea and Paris Saint-Germain are “among” the teams who are keeping a watchful eye on AC Milan winger Rafael Leao’s contract situation, according to Sky Sport Italia.

The TV network claim the Portuguese international has no intention of signing a new deal worth €6m a year (£102,000 a week) that he has been offered by the Rossoneri.

Leao is believed to be keen to stay in Italy, but a €20m fine which he is legally obligated to pay to his former club Sporting Lisbon is hanging over his head, and that means he needs a very high wage in order to pay back the amount he owes.

Sky, however, say that Milan “cannot offer him” the sort of money that he could earn at Chelsea or PSG, and a standoff has ensued which makes it increasingly likely that the player will be sold.

Leao reportedly has a €150m (£133m) release clause but, due to the fact that he only has eighteen months remaining on his contract, he will likely be offloaded for a fraction of the price.