The 28-year-old has signed his intent to leave I Biancocelesti while I Rossoneri are searching for an attacking midfielder after Hakan Calhanoglu left for Inter.
Il Messaggero reports that Lazio president Claudio Lotito does not want to sell Luis Alberto unless he receives an offer greater than €45 million.
Although AC Milan have offered a swap for Leao, Aquile sporting director would prefer a swap with Rossoneri winger Alexis Saelemaekers instead plus an additional €25m.
New Lazio coach Maurizio Sarri has been in discussions with Luis Alberto in the hope that he can persuade the Spaniard to stay with Le Aquile and make the attacking midfielder an focal part of his project.
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The 28-year-old has scored 35 goals and supplied 48 assists in 175 competitive matches for I Biancocelesti since joining the club in 2016.