Hernandez moved to the Rossoneri from Real Madrid in the summer of 2019 and has since established himself and an integral first-team player at San Siro.
The France international has made a total of 222 appearances for Milan across all competitions, recording 31 goals and 41 assists, and won the Serie A title in the 2021-22 campaign.
Hernandez turned 27 last weekend, but he was left frustrated on his birthday as he missed a penalty before being sent off for descent in Milan's 2-1 league defeat away against Fiorentina.
The left-back, who has played nine times in all tournaments for Paulo Fonseca's side so far this term, has less than two years remaining on his contract at San Siro and speculation over a possible exit is beginning to grow.
Five European clubs keeping tabs on Hernandez?
According to Fichajes, Manchester City, Paris Saint-Germain and Bayern Munich are all 'closely monitoring' Hernandez's situation at Milan.
A separate report from SempreMilan claims that Chelsea are 'lurking', while a potential move to Juventus 'cannot be ruled out' for the left-back.
Hernandez's agent Manuel Garcia Quilon has since provided an update on the future of his client at Milan, admitting that he is no closer to extending his contract with the club.
Speaking to TeleLombardia programme QSVS, Quilon said: "There are no negotiations, we haven't spoken about anything for four months, since May-June.
"The club contacted me, asked if we wanted to remain and if we were happy at Milan. We said yes, then there was no further contact.
"The club contacted me, they asked us if the player wanted to stay and if he was happy in Milan. I told them yes, he is very attached to the city, very well settled in Italian football. He is happy here with his family and his son.
"Theo has been at Milan for six years and actions speak louder than words. We have no proposal on the table, we have not received any offer from the club."
Quilon discusses Hernandez future at Milan
Responding to report claiming that Hernandez had demanded a salary worth €8m per season to sign an extension, Quilon said: "Did Theo say that? No... Someone is spreading these rumours to force public opinion against him and clearly we are not the ones doing it."
Quilon has refused to rule out the prospect of Hernandez leaving Milan next summer, but he has insisted that the defender is "happy" at the club and is preparing to remain at San Siro.
"Football is football, it all moves very quickly," Quilon added. "Every day things change for a thousand details. I can say today that Theo's main idea is to continue at Milan, reach an agreement and stay at the club for as long as possible.
"What will happen in a year's time? I don't know. I don't want to lie to you, because I really just don't know. If he reaches an agreement and extends his contract, then it's not an issue.
"If he doesn't sign a new contract, what happens? I don't like to lie, I don't know what could happen, but the idea right now is that Theo is happy at Milan."
Hernandez is currently away on international duty with France ahead of two UEFA Nations League matches against Israel on Thursday and against Belgium next Monday.