According to La Gazzetta dello Sport, Milan wants to extend Allegri's contract, seeing him as key to their sporting project. The plan is to offer a new deal through 2028, extending his current contract by one year with an option for another. A contributing factor is that Milan is expected to qualify for next season's Champions League, which could also allow a salary increase from about five to six million euros per year, according to reports.
Allegri's future has been uncertain, with Corriere dello Sport reporting Real Madrid is monitoring him as a possible coaching alternative for 2026/2027. Sportitalia reported the coach is considering his future due to leadership management questions. Corriere dello Sport via Football Italia noted Allegri has had a strained relationship with Milan's leadership, at times feeling unsupported beyond sporting director Igli Tare. La Gazzetta dello Sport reported Allegri and CEO Giorgio Furlani met Friday to discuss future plans, with Allegri expecting new signings if Milan qualifies for the Champions League, which the club is willing to agree to.
Regarding the rumors that have circulated in the past week, there is complete harmony between me and the club.
Sky Sport Italia reports Modric has three demands to stay: Milan must qualify for the Champions League, Allegri must remain as coach, and the club must provide assurances of competitiveness on all fronts. Sky Sport Italia added Modric is enjoying himself in Italy and could stay if these demands are met.
Allegri was hired in May 2025 and Milan is third in Serie A after 32 rounds. Modric joined Milan after 13 seasons at Real Madrid, becoming a key player on a contract with an option for another year. Sporting director Igli Tare has expressed a desire to keep Modric, whose contract expires this season but has an extension option if he agrees. Allegri's contract runs until 2027, but he has been linked to the Italy national team job.