The Germany international is on a contract to the summer of 2026.
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The Daily Star says Bayern offered Musiala an extension, but that the player declined the proposal. Musiala has set his sights on a move to the Premier League ahead of next season.
Manchester City and Liverpool are said to be at the forefront of interested parties.
The two giants have recently had scouts in Germany to study Musiala.
But old club Chelsea is also showing serious interest and intend to challenge for Musiala's signature,.
Bayern Munich will demand at least 80m to sell the midfielder this summer.