Real are turning to Leao after Mbappe's decision to reject them and sign a new deal with PSG this weekend.
La Gazzetta dello Sport says Real president Florentino Perez is planning to launch a €120m offer for Leao.
Leao has just helped Milan win the Scudetto, scoring 14 goals and producing 10 assists in 42 matches across all competitions this season.
Milan, however, intend to refer Florentino to Leao's €150m buyout clause. There's also plans to extend his deal from 2024 to 2026 and up his terms to €5m-a-year.
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