Renato Sanches is free to leave Bayern Munich if he wants to, coach Carlo Ancelotti has confirmed.

Sanches has been courted by AC Milan throughout the summer and has recently been linked Liverpool as an option to boost their options, with Philippe Coutinho’s future uncertain and Adam Lallana sidelined for up to two months.

“He knows his position in the team. He knows there is much competition,” explained Ancelotti.

“If he stays I am satisfied. If he wants to leave it’s okay as well. No problem.”

The Portugal international has failed to make an impact at the Allianz Arena since completing a move from Benfica in a €35 million deal last July, and Ancelotti would not prevent the 20-year-old from departing.