Sanches joined Bayern from Benfica last summer for an initial fee of £27.5m, and after a fine display ay Euro 2016 with Portugal, much was expected of the dynamic box-to-box midfielder.
Renato Sanches could be on the move this summer.
Vincenzo Montella's side surprised world football with the stunning capture of Juventus' defender Leonardo Bonucci for £35m, having already secured the services of Andre Silva from Porto, Atalanta's Andrea Conti, Hakan Calhanoglu and Ricardo Rodriguez from the Bundesliga and Villareal's Mateo Musacchio.
The Italian heavyweights want to create a competitive side that will challenge Juventus for major honours next year and in order to do that, they want to add more quality players to their ranks.
With his contract expiring at the end of next season, Sanchez has been heavily linked with a move away from Arsenal this summer with Bayern Munich believed to be keen on him.
Reports out of Germany on Monday report that Portuguese global midfielder Renato Sanches is set to join Milan from Bayern Munich.More news: Tim Tebow hits walk-off bomb for St. Lucie Mets
According to Süddeutsche Zeitung, Sanches appears to be headed for Milan on loan.
Staying at Bayern, though, would also mean a battle to make it into the first team.
"I can confirm that AC Milan has an interest in Renato Sanches", he told reporters prior to flying to Asia for Bayern's pre-season tour.
According to Sky Sports News, Milan want to take Portugal worldwide Sanches on an initial loan deal, with an option to purchase the midfielder for £35m at the end of the 2017-18 campaign.
'At least I have the impression that AC Milan are not ready to meet our demands.