Asensio’s future at the Santiago Bernabeu remains uncertain since he is approaching the end of his contract.
The winger’s predicament at Real Madrid has sparked interest from other clubs, including Serie A heavyweights AC Milan and Premier League duo Manchester United and Arsenal.
The Gunners are said to have spoken with Asensio’s agent about a summer transfer.
Arsenal, on the other hand, is up against AC Milan for Asensio, and according to Italian newspaper Corriere dello Sport, Real Madrid boss Carlo Ancelotti has given his agreement to trade the winger to the Serie A giants.
Paolo Maldini, the Rossoneri’s technical director, called his old coach Carlo Ancelotti to discuss a possible move for Asensio to the San Siro this summer, and he has given his approval.
However, AC Milan may struggle to complete a deal for the Los Blancos star since they are currently unable to meet his pay demands, while Arsenal and other clubs are also vying for his signing.
The 26-year-old has been at Real Madrid since 2015, and it is unclear where he will play next if he decides to leave the European Champions.