The 22-year-old forward had an indifferent last season at the San Siro where he scored six goals in 30 appearances in Serie A.
He joined AC Milan from Lille in 2019, but the Portuguese is yet to develop into the prolific striker that the Rossoneri were expecting him to become when they signed him.
Leao has been linked with a move away from AC Milan this summer and he has suitors in the Premier League, with Wolves and Everton interested in signing him.
The Serie A giants are prepared to let him go and it has been claimed that they are expecting to earn a considerable fee from his departure.
AC Milan want a deal worth €25m to €30m before agreeing to sell him in the summer transfer window.
At 22, Leao still has scope for improvement and the Rossoneri want a big fee given the potential he has.
The forward also has interest from France with Marseille keen on signing him from AC Milan this summer.
Given the current climate, it remains to be seen whether any of his suitors consider paying the kind of figures AC Milan want.