Bayern Munich are prepared to part with the Portugal international – who only made nine starts in 2016-17 – whether that be on loan or permanently.
Bayern Munich CEO Karl-Heinz Rummenigge said the German champions are willing to negotiate the sale of Renato Sanches, though he doubts AC Milan are able to meet their demands.
Rummenigge has already confirmed Milan's interest in 19-year-old Portuguese midfielder Sanches, who is facing a fight to break into Carlo Ancelotti's starting XI.
With Ancelotti able to call upon new arrivals Corentin Tolisso, James Rodriguez and Sebastian Rudy, Milan are reportedly ready to take Sanches on an initial two-year loan deal with the option to buy for €40 million in 2019.