Aston Villa in talks to sign Rafael Leao from AC Milan
Aston Villa are in talks to sign Rafael Leao from AC Milan, with the Portugal winger reportedly preferring Villa Park over Galatasaray. Villa have raised their bid to €42 million fixed plus €3 million in bonuses and are pursuing a loan deal with an obligation to buy, according to multiple reports on August 26, 2026.
Rafael Leao has said he wants to leave Italy after rejecting a huge offer from Al-Hilal, leaving Aston Villa and Galatasaray in a straight fight for his signature. The saga matters because Villa are overhauling their attack after losing Ollie Watkins and need a marquee name to compete in the Premier League.
Key Takeaways
- Aston Villa believe Rafael Leao prefers a move to Villa Park and are negotiating a loan with an obligation to buy.
- Villa's latest bid is €42m plus €3m in bonuses; Galatasaray have offered €45m plus add-ons but Leao wants a higher salary.
- Leao turned down a lucrative Al-Hilal offer and has been left out of Milan's recent squad as he seeks an exit.
- Villa agreed a £65m package for Nicolas Jackson from Chelsea and are losing Watkins to Al Hilal for £50m.
- Leao's Milan contract runs until 2028; he has 80 goals and 61 assists in 291 appearances for the club.
Why does Aston Villa want Rafael Leao?
Unai Emery's side need attacking reinforcements after a summer of upheaval. Morgan Rogers, Youri Tielemans, Ezri Konsa and Lucas Digne have all departed, while Watkins is set to join Al Hilal. Villa opened the season with a four-goal loss at Brighton, underscoring the urgency.
Leao would add pace and creativity on the wing. The 27-year-old averaged just under 20 goals and assists per season since 2021 and was Serie A player of the season when Milan won the Scudetto in 2021-22. His 2025-26 output dipped to 10 goals and three assists in 31 appearances, but Villa see potential for a reset in Birmingham.
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How much are Aston Villa offering for Rafael Leao?
According to Gianluca DiMarzio, cited by Yahoo Sports, Villa raised their offer to €42 million fixed plus €3 million in bonuses. Galatasaray remain ahead on the fee at €45 million plus bonuses, but Leao has not accepted because he wants a bigger salary than the Turkish club is offering.
The Athletic reported that Villa made an indicative offer earlier in the week and would prefer a loan with an obligation to buy rather than an outright transfer. Leao last signed fresh terms with Milan in 2023 and is under contract until 2028.
Who else is competing to sign Rafael Leao?
Galatasaray are Villa's main rival, with the higher bid but a wage package Leao finds insufficient. Tottenham made enquiries through Jorge Mendes but did not advance, according to Goal.com. Al-Hilal also tabled a lucrative offer that Leao rejected; he is not interested in playing in the Saudi Pro League.
Leao returned to training with Milan and is technically available for Ruben Amorim's side, but intermediaries are working to finalize a move. He featured for Portugal at the 2026 World Cup, scoring once and adding an assist in five appearances before elimination by Spain in the last 16.
What happens next in the Rafael Leao transfer saga?
These are described as crucial hours. Leao must decide between Galatasaray's higher fee and Aston Villa's preferred destination and salary structure. Villa are simultaneously closing in on Jackson and exploring defensive options such as Jean-Clair Todibo after missing out on Joel Ordonez.
If Leao chooses Villa Park, Emery would gain one of Europe's most exciting wingers on his day—though questions about consistency and defensive work remain after his struggles in Italy. For now, Milan, Villa and Galatasaray wait on a player who has spent the summer saying no.