The Portuguese forward's relationship with the Rossoneri has fractured under Massimiliano Allegri, who has deployed him as a central striker rather than a winger — a role Leao has struggled to embrace.
La Gazzetta dello Sport reports the dressing room has rallied around the number 10, but the ceasefire feels temporary at best.
Leao has retreated into a wounded silence despite his usual hyperactivity on social media, according to the Italian paper. Those close to the 25-year-old say he feels blindsided by the hostility of Milan supporters, particularly given the sacrifices he believes he has made this season — including playing through a pubic injury and adapting to an unfamiliar position.
He acknowledges a 45-day goal drought and his own wastefulness in front of goal, but sources suggest he senses a deep ingratitude from the club and its fanbase.
AC Milan have opened initial talks with Arsenal, with the Rossoneri not opposed to a departure if an offer in the region of €75 million arrives. His market value has fallen from around €90 million to approximately €65 million, with tensions over his attitude cited as a contributing factor in Milan's willingness to move on.
Saudi Arabia has already been ruled out by Leao himself. The Premier League is now the clear destination, with Arsenal and Manchester United both monitoring the situation.
Allegri's deployment of Leao in a more central finishing role has limited the one-on-one situations in which he has traditionally thrived, a stylistic tension that has weighed on his output all season.
Milan are simultaneously pursuing a replacement. Bologna striker Santiago Castro has emerged as the leading candidate — a traditional centre forward with link-up ability who fits Allegri's preferred profile.
The World Cup in the United States this summer adds a further dimension. Leao will want to arrive at that tournament in form and playing regularly — and that, more than anything, may accelerate his exit from the San Siro.