Bayern Munich chief Max Eberl has admitted to difficulties in renewing Jamal Musiala's deal.
Negotiations have stalled between the Germany international and the club over the past week.
Premier League giants Manchester City and Liverpool are alerted and are reportedly monitoring developments.
Eberl said about Musiala's situation, as quoted by Tribal Football: "It is difficult, but not impossible.
"Jamal knows what he has in Bayern. He grew up here, he got his first credits here, and has played himself up to this level here.
"The dialogue is intensified. Our club is extremely ambitious and Jamal knows it. He wants to win titles."
The 21-year-old's deal with Bayern Munich expires in 2026.
