The Portugal forward is attracting plenty of interest due to his fine form with the Italian giants this term in which he has bagged seven goals and nine assists in 20 appearances so far.
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With 18 months left on his contract, the 23-year-old is attracting some admiring glances with the Blues among the clubs keen on a move for him.
Graham Potter has been dealt an injury blow with Armando Broja set for a lengthy spell on the sidelines after suffering a serious knee injury in a friendly against Aston Villa, meaning that Chelsea could be forced into the market for a striker as early as January.
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But while Leao is likely to be near the top of any shopping list in west London, his AC Milan teammate Ibrahimovic believes that he'd be better served staying with the Serie A side.
"Of course, Milan is the right environment for him," Ibrahimovic told Sky Sports in Italy per Fabrizio Romano.
"Just look at his growth. When he arrived, he was far from the decisive player he is today. Here he is very important for us, elsewhere would he be as important? He would have to start from scratch, you can't be sure he would be ready right away.
"At Milan he has confidence, space and freedom, which is not a given at another club, it's up to you. Besides, you can see that he is happy here, by now he is laughing even before scoring. He is the young man who has grown the most.
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"Theo [Hernandez] has improved so much, [Charles] De Ketelaere is strong, and patience is needed. But Leao is on another level, above average. He lacks a step, he will only do it when he is fully convinced of his abilities.
"Today even he doesn't really know how strong he is. Then he will be really scary. And the price will go up."