Despite the appointment of new coach Max Allegri, there is a belief Leao is prepared to leave the Rossonero this summer.
Foot Mercato says Bayern have long followed Leao and are now ready to act.
Bayern are prepared to make a cash-plus-player offer for Leao, who's contract carries a €175m buyout clause.
The German giants intend to bid €75m plus a choice of Leon Goretzka or Kingsley Coman in exchange for Leao.
Portugal international Leao's contract runs to 2028.