The 28-year-old is out of contract in Germany next summer and he now has no intention of renewing with the club, as agent Pini Zahavi looks to find a replacement club.
Last month, a report in Diario AS claimed Alaba’s representative Zahavi has made contact with Los Blancos to discuss the future of his client, who is out of contract at the German giants in the summer of 2021.
Paris Saint-Germain and Chelsea are said to be the two other clubs who are monitoring the situation and would be best-placed to challenge Los Blancos for a deal.
It is said that he will definitely remain at Bayern for the remainder of the campaign and then will leave as a free agent next summer.
It is said that Zahavi is keen to strengthen his own personal ties with the biggest clubs in Europe, and believes negotiating this deal would be a big boost to his own profile.
The Austrian is highly sought after due to his versatility in between defence and midfield, with Bayern deploying him at left back and central midfield in recent times.
Born in Vienna to a Nigerian father and a mother from the Philippines, Alaba came through the youth system at Bayern after being poached from Rapid Vienna at 16.
Aside from a brief spell on loan with Hoffenheim, it’s been the club he’s spent his entire professional career and has amassed just shy of 400 appearances for the first-team.