A report from Fichajes claims that both European clubs have set their sights on the 24-year-old Portuguese international and they could look to make a move in the summer.
It is hardly a surprise that Liverpool are looking to bring in a quality attacker, especially with the future of Mohamed Salah uncertain.
The 31-year-old Egyptian was heavily linked with a move to Saudi Arabia during the summer transfer window, but the Reds managed to hold on. Those clubs are likely to return for Salah at the end of the season and Liverpool might be open to selling him in the summer.
He will have just one year left on his contract at the end of this season and the Reds will not want to lose him on a free transfer in the summer of 2025. If they accept a substantial offer for Salah at the end of the season, they will need to replace him adequately.
Leao will add pace, flair and goals to the Liverpool attack if the Premier League side can secure his services. Similarly, Real Madrid need to bring in attacking reinforcements after the departure of Karim Benzema as well.
The AC Milan attacker was a contract with the Italian club until the summer of 2028 and he is valued at €150 million.
It will be interesting to see if either of the two clubs are willing to shell out that kind of money in order to sign the Portuguese international.
Leao is versatile enough to operate on both flanks and he managed to score 16 goals across all competitions last season.
