Speculation surrounding the 21-year-old is rife at present, even after the summer transfer window has closed, amidst uncertainty over his contract situation at the club.
Musiala is due to see his current deal expire in June 2026 and it has previously been reported that Bayern view the versatile attacker's contract extension as a "really important mission".
The Germany international recently addressed his future at Bayern, revealing that he is "very happy" at the club, but also admitting that "things can always change quickly in the world of football".
Bayern Munich director of sport Max Eberl has since stated that it will be "difficult" to agree a contract extension with Musiala, who is understood to have already rejected one offer presented to him, raising concerns about his long-term future in Bavaria.
Musiala to extend Bayern contract?
However, according to German news outlet Abendzeitung, via The Mirror, Bayern have started to make a breakthrough in negotiations with Musiala after holding "very positive" talks with his representatives.
Bayern remain determined to keep hold of their star player and fend off interest from clubs including Real Madrid, Barcelona, Man City, Man United, Arsenal and Liverpool.
It has previously been reported that Man City manager Pep Guardiola is keen to lure Musiala to the Etihad Stadium in 2025, with the youngster viewed as a potential successor to 33-year-old playmaker Kevin De Bruyne.
Man United have also been tipped to make an ambitious big-money swoop for Musiala after he admitted that former Bayern teammate Joshua Zirkzee - who now plies his trade at Old Trafford - jokingly attempted to persuade the German to join him at the Red Devils.
Musiala plays down Zirkzee reunion rumours
Speaking to Welt am Sonntag earlier this month, Musiala said: "You always joke around with friends and dream of playing together in a team one day. The jokes go both ways: I also told Josh that he should come back to Bayern. But you shouldn't take that too seriously.
"I am very happy at FC Bayern and fully focused on our goals with the club and the national team. I don't think too much about where I will be playing in five years."
Musiala is widely regarded as one of the brightest young talents in Europe and has already made 169 senior appearances for Bayern across all competitions, scoring 46 goals and providing 34 assists, before turning 22.
The attacker ended Euro 2024 in the summer as one of six players to win the Golden Boot award after scoring three goals, and he has since chipped in with three goals and three assists in six matches for Vincent Kompany's Bayern this term.