Bayern Munich superstar Michael Olise currently favours a move to Real Madrid over a return to the Premier League, as per reports in Germany.

The France attacker has been linked with an Allianz Arena exit for several months and it’s understood that he is firmly on Real Madrid’s transfer radar amid their continued pursuit of first-team reinforcements.

However, it’s reported that Bayern are willing to make Olise their highest-paid player in order to retain his services and sporting director Christoph Freund has confirmed that contract negotiations are ongoing.

“He is under contract until 2029, so there is no pressure. He feels extremely comfortable at FC Bayern, and we are always in contact with him. As I said, there is no time pressure,” Freund admitted to Sky Germany (via BuliNews).

“Michael has made incredible progress with us and is currently one of the best players in the world. We are extremely happy that he plays for us.”

Despite this, Olise is aware of growing transfer interest and he is “excited” about the possibility of joining Real Madrid, according to German transfer reporter Christian Falk.

Los Blancos completed the signing of RB Leipzig winger Yan Diomande over the summer, but they remain interested in Olise and it’s claimed that he is still one of their top transfer targets, with speculation therefore likely to resurface next year.

Exclusive: Arsenal monitor Michael Olise

Although Olise favours a move to Real Madrid over a Premier League return, FootballTransfers can reveal that Arsenal are keeping tabs on his contract situation at Bayern as they continue to assess the winger market.

Bayern are desperate to hand the France international improved terms in order to guarantee that he will stay at the club beyond 2027, and we can confirm that a release clause will be one of the key points under discussion. Olise does not currently have one, but Bayern may have to compromise in order to get him to extend.

Given Arsenal's financial strength and willingness to pay whatever it takes for players of the calibre of Vinicius Junior and Olise, a release clause could make a transfer to north London possible even if he were to sign a new deal.

However, it must be emphasised that this is all hypothetical right now. Arsenal are not actively pursuing the 24-year-old at this stage; they are just keeping themselves informed on his situation.