Bayern Munich Transfer News: Latest on Renato Sanches, Top Rumours

Bayern Munich midfielder Renato Sanches' proposed move to AC Milan has reportedly broken down over the Serie A side's insistence on taking the Portugal international on loan without the obligation to buy.

Premier League duo Chelsea and Manchester United remain keen on Sanches, but Bayern manager Carlo Ancelotti has said the player will stay.

All interested suitors could be set for disappointment after the Italian provided this update on Sanches' immediate future, per Tuttosport (h/t Le 10 Sport, via Edo Dalmonte of Calciomercato.com):

"There is nothing new with Renato Sanches. He has started the season with us, and he’ll stay with us until the end of transfer market, on August 31. He played well in our last match."

Ancelotti hinting at Sanches staying is somewhat surprising since the 19-year-old didn't score a single goal or register one assist during his first season in Munich, according to WhoScored.com.

PATRIK STOLLARZ/Getty Images

The lack of output in the final third made the teenager a disappointment. He had arrived at the Allianz Arena to much fanfare after his breakout performances for Portugal at Euro 2016.

Naturally, Sanches' lack of progress since arriving in the Bundesliga only increased the chatter he would move on this summer.

Ancelotti may be talking the player up now, but reports in July said the Bayern boss was disappointed with Sanches, per German publication Kicker (h/t Anthony Chapman of The Sun): "There are murmurings in Bavaria that Carlo Ancelotti is not convinced Sanches can make the grade, which is why he made a club-record move for Lyon star Corentin Tolisso."

It seemed like good news for Sanches, with the youngster preferring a move to Milan over a switch to Chelsea, according to Italian source Fanta Gazzetta (h/t Joe Short of the Daily Express).

Alex Grimm/Getty Images

Yet, as Dalmonte detailed: "Milan want to be able to get him on loan with a right to buy, while Bayern will only sell the youngster, or at least loan him with the obligation to buy. "

Ancelotti saying Sanches will stay beyond the close of the transfer window could boost the depth in Bayern's midfield this season. The club has Arturo Vidal, Thiago Alcantara, Corentin Tolisso and Sebastian Rudy in the middle.

Sanches could still be a factor in this group. He's talented enough but needs to make major strides during his second season in Munich.