The Italian-Brazilian forward, born in Bergamo and a product of Atalanta's academy before Dortmund won the race for his signature in 2024, is currently contracted until June 2027.
His camp and the club are discussing whether to extend to 2030 or 2031, with both options under consideration. Without a new deal, Inacio would enter his final contract year at the end of this season.
Borussia Dortmund regard him as a significant long-term asset and the new contract is intended to reflect that commitment. The club have been deliberate in escalating his involvement this season — Inacio made his first Bundesliga start against Freiburg last weekend, playing a role in a 4-0 victory and impressing enough to suggest he is ready to take on greater responsibility.
Head coach Niko Kovac has been measured in his public comments about the teenager, warning that talent alone is not sufficient.
"Raw ability is not enough. I also need to see hard work, discipline and diligence on the training pitch."
Inacio has represented Italy at youth level, earning 40 caps and scoring 24 goals across various age groups, and was top scorer at the UEFA Under-17 European Championship in Albania. He holds dual Italian and Brazilian nationality through his father, the former Brazilian footballer Piá.
Barcelona and Paris Saint-Germain have both had scouts watching Inacio in recent weeks, according to transfer expert Gianluca Di Marzio, adding external pressure to Dortmund's push to finalise terms quickly.
Julian Brandt's confirmed departure this summer opens space in the attacking setup, and Inacio is viewed internally as a candidate to fill part of that void in the seasons ahead.