Rafael Leao's contract discussions with AC Milan have reportedly stalled, as the Italian champions are not currently prepared to meet the attacker's wage demands.
The 23-year-old enjoyed an impressive 2021-22 campaign for his Serie A club, scoring 14 goals and registering 12 assists in 42 appearances in all competitions.
Meanwhile, the Portugal international has been in strong form at the start of this season, scoring three times and providing four assists in seven appearances in all competitions.
Leao's current deal at San Siro is due to expire in June 2024, but Milan boss Stefano Pioli recently said that the club were planning to offer him 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.
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Chelsea are believed to have failed with an €80m (£69m) offer for Leao late in the transfer window, with the Blues said to be keen admirers of the Portuguese.
According to the Corriere dello Sport, the capital outfit have now been given encouragement in their pursuit of the attacker, who has seen discussions over a new deal with Milan hit an impasse.
The report claims that Leao wants a £6m-a-year contract in Italy, but the Serie A champions are not currently prepared to meet that figure.
Earlier this year, Milan sporting director Paolo Maldini called Leao "untouchable" at the club.
"We consider Rafa Leao untouchable, although there is a clause of €150m (£127.4m)," Gazzetta dello Sport quoted Maldini as saying at the time.
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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," Pioli added when questioned on Leao after Milan's 3-2 win over Inter earlier this month.
"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 provided the assist for Junior Messias to open the scoring in Milan's Serie A clash with Sampdoria on Saturday, before Olivier Giroud scored the winner for the champions in the 67th minute.
The Portuguese has been with Milan since August 2019, representing the club on 122 occasions, scoring 30 goals and registering 25 assists in the process.
New Chelsea boss Graham Potter is expected to be given funds to improve the squad in January despite the club's huge spending during the summer transfer window.
