According to the "Milan Sports" report, Bayern does have an interest in Leo, but Milan has not received a offer yet.
Bayern is very interested in Leo, and rather, Bayern has listed him as one of the priority signing targets this summer. This interest does exist, and Sports Illustrated took the lead in reporting the news yesterday. The potential transfer deal is still in its initial stages and Milan has not received any offer from Bayern.
Milan has finalized the candidate for the coach and director, but both Allegri and Tare regard Leo as a non-selling item, or as a player who is considering selling the last one. At present, it is unlikely that Leo will leave Milan this summer, and Milan regards him as the starting point of a new project.
Bayern and other Saudi teams interested in Leo may need to activate a 175 million euro termination fee to sign him. But they won't do that because the price is beyond the market value, especially given that Leo's performance has fluctuated significantly in recent seasons, it is not clear whether the two sides will start in-depth negotiations on lower transfer fees.