TMW says both giants have been encouraged by suggestions Leao is unsettled and ready to leave Milan this summer.
Interest from the Saudi Pro League has arrived, with Al-Hilal, Al Nassr and Al-Ittihad all keen.
However, Bayern and Liverpool have also made their move in recent days. Indeed, a meeting between Bayern and Leao's camp has been held in recent days.
Liverpool, meanwhile, are also interested and have learned Milan would seek to sell for €130m this summer.
At Milan, Leao is on €6.5m-a-year, while from Saudi Arabia, he has an offer of €25m-a-year on the table.