The 18-year-old spent the latter stages of his youth career at Rennes before progressing to the first team, with his debut for the French outfit coming in 2021.
Tel made the move to Bayern in the summer of 2022, penning a five-year contract at Allianz Arena, and he has represented the Munich giants on 56 occasions, scoring 12 goals and registering four assists in the process.
The forward has been a regular for Thomas Tuchel's side this season, making 28 appearances, scoring six goals and registering four assists.
Man United are currently being linked with a move for the Frenchman, who scored against the 20-time English champions in the Champions League earlier this season.
However, according to Bild, there is also firm interest from the Premier League in the shape of Arsenal.
The Gunners will be in the market for at least one new forward this summer, but it is likely that a central striker will arrive alongside a wide forward, and Tel has largely played off the left this season.
The Frenchman has managed three goals and three assists in 18 Bundesliga appearances this term, while he has contributed two goals and one assist in seven Champions League outings.
Paris Saint-Germain are another club said to be keen on Tel, with the French champions preparing to lose Kylian Mbappe on a free transfer at the end of the 2023-24 campaign.
Tel's agent, Gadiri Camara, refused to rule out a summer move for his client in a recent interview.
"Mathys loves the club, the fans, he wants to be important and win all the trophies here with a strong team," Camara told Bild when asked about the recent speculation.
"Sometimes you just need to feel like you're on the same path. We'll see very soon, but I'm confident. But if not, we have to consider all options because Mathys knows that he is valuable and will be a top player."
Despite being a regular in 2023-24 in terms of appearances, Tel has only started three times in all competitions for Bayern this season, while all 18 of his Bundesliga outings this term have come from the bench.
Outside of the German Cup and German Super Cup, Tel's only start of this season came against Copenhagen in the Champions League at the end of November.