The 27-year-old is facing an uncertain future at San Siro, as he now has less than 18 months remaining on his contract.
Hernandez has established himself as one of the world's best left-backs during his time in Italy and has made a total of 249 appearances for the Rossoneri in all competitions, recording 33 goals and 44 assists.
However, the 2021-22 Serie A title winner struggled to show his best form at the beginning of this season and was experiencing 'high tension' with former head coach Paulo Fonseca.
The France international's form has since been inconsistent under new boss Sergio Conceicao at a time when speculation about his long-term future with Milan is rife amid reported interest from a number of top European clubs.
Who is keen to sign Hernandez this summer?
It has previously been reported that Hernandez was pining for a return to Real Madrid, where he spent two seasons between 2017 and 2019 and made just 23 appearances before joining Milan for around €20m.
However, it is now understood that Manchester City are currently 'edging ahead' of Los Blancos in the race to sign the Frenchman, who could be available for as little as €35m (£29m).
It is claimed that a 'clean break of sorts' and the opportunity to test himself in the Premier League for the first time could now be more appealing to Hernandez than a return to Real Madrid.
Ruben Amorim's Manchester United have also been credited with an interest in Hernandez, but a transfer to Old Trafford appears unlikely as the Red Devils are set to miss out on securing European football for next season.
A possible switch to Bayern Munich has also been mooted, but interest from the Bundesliga giants seems to have cooled after they recently tied down Alphonso Davies to a new long-term contract.
What does the future hold for Hernandez and other Milan stars?
Hernandez played the full 90 minutes in Milan's 2-1 Serie A loss to Bologna on Thursday, and before kickoff, Rossoneri chief Moncada insisted that the club cannot afford to see players run down their contracts and leave for free, suggesting that some stars could therefore be sold to avoid this.
While both Hernandez and first-choice goalkeeper Mike Maignan are out of contract in June 2026, Moncada has refused to rule out the possibility of both players staying at Milan, while he has also confirmed that Christian Pulisic and Tijani Reijnders are set to extend their contracts.
"The renewals are very positive," Moncada told DAZN. "We worked well thanks to the club, we did everything to renew with the players.
"We're very close on Reijnders and Pulisic. Theo (Hernandez) and Maignan? The same goes for Theo and Maignan.
"The important thing is to have control over the players. We cannot lose players when their contracts expire, ever. We work hard and it seems to me that the players are very happy to stay with us."
Although it seems that Hernandez is among those who might be content with staying at Milan, journalist Fabrizio Romano claims that a summer exit for the left-back is 'a possibility' and has already been considered internally at the club since December last year, providing a huge boost the likes of Man City and Real Madrid.
Written by
Oliver Thomas