According to reports in Germany, the 20-year-old New Zealander is currently in the country looking to complete a deal which would see him become Bayern's first ever Indian or Kiwi player.
Singh is expected to initially join Munich's reserve side but has been tipped as a future first-team prospect.
After making his first A-League start for the Nix in early 2018, the attacking midfielder has gone on to make 40 appearances for Wellington scoring nine goals and contributing eight assists.
Though contracted to the club for another year, Phoenix's general manager confirmed they are open to Singh moving to Bayern should the right offer be made.
"There were a few clubs that were interested in Sarpreet and (Bayern) was the one he was most interested in exploring further," David Dome told www.aleague.com.au.
"Now we’re just waiting for a formal offer to come across to see how much Bayern value the player at, and if it meets our expectations.
"All things being equal, Sarpreet could end up playing in Germany next year.
"I think even the fact that he’s had interest from the fourth-biggest football club in the world, has given him a bit of a shock. But a very, very good one.”
Having already represented the All Whites, Singh was in action for New Zealand's U20's side at the recent U20 World Cup in Poland where he scored one goal.
It was a tournament where Singh knew he had the ability to attract potential club interest from.
"I think definitely it's an opportunity to express yourself on the world stage but that's not something I worry about," Singh told Stuff.
"All I want to do is do my best and do the best for the team. Those outside matters will take care of themselves as long as you perform on the pitch."
Young A-League players are no stranger to testing themselves in Germany with former Melbourne Victory attacker Christian Theoharous signed by Borussia Monchengladbach last year.