Rafael Leao to Barcelona? AC Milan offer winger to La Liga champions in player exchange as Hansi Flick's side unable to meet asking price for top target Luis Diaz

According to Mundo Deportivo, the Rossoneri, now under new boss Massimiliano Allegri, are pushing for the Uruguayan centre-back and have reportedly reactivated a move that was first floated late last summer. Barca, meanwhile, are hunting for a left-sided attacker and have Leao among their backup plans after hitting a wall in the Diaz pursuit.

Barca’s top attacking priority remains Diaz, but financial reality bites. With Liverpool demanding at least €80 million (£67m/$87m), Flick's side have capped their spending limit at €60m (£50m/$65m), Sport reports. The club’s La Liga-mandated salary restrictions and lack of player sales mean they simply can’t go higher. As such, Deco and the Barca board are quietly exploring cheaper or alternative deals, like a trade for Leao, without overcommitting early in the window.

Though there’s no official statement on the Leao-Araujo exchange, Deco has publicly said Barca must reinforce their flanks. “We feel too dependent on Raphinha and Lamine,” he told media recently. “We’re looking for alternatives.”

While the Diaz deal remains open, Deco’s remarks make clear that the club is considering all creative options, including player trades, to upgrade the attack without breaking financial fair play rules. Although Araujo renewed with Barcelona until 2030, his contract includes a crucial exit clause: between July 1 and July 15, his buyout drops to €65m (£55m/$71m) That window could be decisive. Meanwhile, Leao has three years left on his Milan deal, but after a mixed 2024–25 season, the club appears open to cashing in, or using him as leverage in key deals.

Unless Díaz publicly pushes for the move, or Liverpool lower their demands, Barca may have to abandon the Colombian pursuit. Alternatives like Nico Williams, who has a €62m (£53m/$67m) release clause, Marcus Rashford, or a surprise Leao trade are on the table.