The 23-year-old has been a key performer for the Rossoneri, having scored 41 goals and provided 29 assists in 162 appearances.
A club statement read: “AC Milan is pleased to announce that Rafael Leao has renewed his contract with the club until June 30, 2028.
“Since joining in the summer of 2019, Rafa boasts 162 appearances, 41 goals and 29 assists for the Rossoneri, and was named ‘Best Player in Serie A’ last season.
“AC Milan and Rafael continue their journey together.”
Fabrizio Romano has reported that Leao will earn £4.3million per year and has a whopping £175m release clause in his new deal.
Chelsea had been strongly linked with the Portugal international for quite some time but their interest cooled after they signed 200 wingers in the space of six months.
Even though Leao’s previous deal was set to run out in 2024, Milan were reportedly looking to receive £100m for their star player.
Chelsea have spent close to £600m in less than a year under the ownership of Todd Boehly, signing Mykhaylo Mudryk, Pierre-Emerick Aubameyang, Noni Madueke and Raheem Sterling, who can all play in Leao’s position.
The Blues also tried to sign Raphinha last year but have bigger priorities going into the upcoming summer transfer window.
They are targeting a new centre-forward and defensive midfielder, with Brighton’s Moises Caicedo and Sporting’s Manuel Ugarte on the agenda for Mauricio Pochettino.
Outgoing transfers will be just as important in the summer transfer window, with a lot of the Blues’ failings in 2022/23 coming down to how unmanageable their extremely bloated first-team squad.
Aubameyang, Mason Mount, Ruben Loftus-Cheek, Hakim Ziyech and Christian Pulisic are all expected to depart on a permanent basis, while the likes of Callum Hudson-Odoi, Trevoh Chalobah and Conor Gallagher are facing a summer full of uncertainty.
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The article Chelsea miss out long-time target as details of big-money contract and release clause emerge appeared first on Football365.com.