AC Milan boss Stefano Pioli has revealed that the club are planning to offer Rafael Leao a new contract in the near future amid the ongoing speculation surrounding a potential switch to Chelsea.
The Blues are believed to have made a €80m (£69m) offer for the Portugal international in the latter stages of the summer transfer window, only to see it rejected by the Italian champions.
Chelsea would allegedly have had to pay Leao's full release clause of €150m (£129.2m) in order to stand a chance of signing him before Thursday's deadline.
Leao enjoyed an impressive 2021-22 campaign for his Italian club, scoring 14 goals and registering 12 assists in 42 appearances in all competitions.
Meanwhile, the 23-year-old has been in strong form at the start of this season, scoring three times and providing two assists in five Serie A appearances.
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Leao starred in Saturday's derby with Inter Milan, scoring twice and providing an assist, as the reigning champions recorded a 3-2 win over their rivals.
The forward's existing deal only has two years left to run, but Pioli has said that the club are planning to offer him the chance to sign a new contract in the near future.
"The club wants to offer Leao a new deal soon. They will take care of it - he's working at the best level. He's not creating any problems, he's just working hard as a top professional," Pioli told reporters.
Meanwhile, the club's head coach also lavished praise on Leao's display against Inter Milan, with the victory leaving AC Milan into second position in the Serie A table.
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"In order to improve, you need talent and intelligence, so Leao has both of those. We gave him the time and freedom to make mistakes so he could learn," said Pioli.
"Naturally, every time we put him in one-on-one situations, he's an important weapon in our armoury. Rafa has a body language that might confuse people, but I can assure you he knows what potential he has and is very eager to learn."
Leao has been with Milan since August 2019, representing the club on 120 occasions, scoring 30 goals and registering 23 assists in the process.
Chelsea boosted their attack over the summer with the signings of Raheem Sterling and Pierre-Emerick Aubameyang, while the club announced on Saturday that Armando Broja had signed a new contract at Stamford Bridge.
