The 24-year-old has settled well in Munich since joining Bayern, making a strong impression with his attacking performances. The German champions are keen to build around him and are reportedly considering a contract extension as part of their longer-term plans.
A return to England is not particularly attractive to Olise, despite spending much of his footballing development there. He came through the English system and made his professional debut for Reading before progressing to the Premier League.
Sources suggest that a move to Spain is the only realistic alternative to remaining at Bayern Munich, putting Real Madrid and Barcelona among the clubs potentially capable of testing the German side’s resolve.
Olise is understood to be comfortable in Munich, which gives Bayern reason to believe they can retain him. His reported preference for staying in Germany or considering Spain could also reduce the prospect of a move back to English football.
Both Madrid and Barcelona have the profile to attract elite attacking talent, although there is no indication in the report that either club has made a formal approach for Olise.
For Bayern, the priority is to avoid uncertainty developing around one of their key attacking players. A new contract would provide greater security and underline the club’s intention to keep him as part of their long-term project.
Olise’s technical ability, creativity and capacity to influence matches in the final third have made him a valuable member of the squad. Losing him would force Bayern to consider how best to replace that contribution, while a renewal would give them continuity in attack.
The situation remains at the stage of reported preferences and contract planning rather than an imminent transfer. Bayern will hope that Olise’s satisfaction with life in Munich translates into a longer commitment, even as the prospect of interest from Spain remains in the background.