Chelsea, Man City encouraged over Rafael Leao's messy contract situation at AC Milan

Chelsea and Manchester City are watching Rafael Leao's contract situation at AC Milan.

La Gazzetta dello Sport says Leao, who has a deal to 2024, has requested a £6m-a-year salary and has also asked Milan, along with his former club LOSC Lille, to help him pay a £16 million debt to Sporting CP.

Leao lost an appeal over a contract dispute with Sporting earlier this year and was ordered to remunerate the club after he prematurely terminated his contract when fans invaded the club's training ground and attacked the players.

It's likely that the Serie A champions will be able to meet the majority of his wage demands, with Milan tabling a £4m increase to his salary, which currently sits at £1.7m-per-year, but it seems the sticking point remains his debt to Sporting.

Chelsea approached Milan to sign Leao earlier this summer but were unwilling to meet his £132m release clause but Todd Boehly's pockets could stretch to £106m to bring him to Stamford Bridge.

City, meanwhile, have been watching Leao since his time with Sporting.