Morata has struggled for game time under Real Madrid boss Zinedine Zidane this term managing just five La Liga starts, which has prompted talk of a move.
Real activated his buy-back clause to re-sign him from Juventus, but he has been behind Karim Benzema and Cristiano Ronaldo in the pecking order.
Jose Mourinho wants to sign a world-class striker for Manchester United, although Express Sport understands they have cooled their interest in Antoine Griezmann.
United have been keeping tabs on Morata, with recent reports suggesting Jose Mourinho would be interesting in signing him and Romelu Lukaku.
Alvaro Morata's next club: Where could the Real Madrid ace go next? Tue, May 16, 2017
Where is Alvaro Morata tipped to go next? Odds provided by Paddy Power
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Where could Alvaro Morata go next? Odds provided by Paddy Power
Alvaro Morata could join AC Milan
Chelsea have also sounded out a move with Antonio Conte bracing himself for the potential departure of Diego Costa.
Conte knows Morata well from their time together at Juventus.
However, according to The Sun, Chelsea miss out on a deal.
The report says AC Milan will splash out £52million to secure deal.
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Antonio Conte looks set to miss out on a deal for Alvaro Morata
It is said the 24-year-old will sign a five-year contract, pocketing around £125,000 a week.
The Serie A giants will be able to spend freely as they have been taken over by Chinese consortium Sino-Europe Sports.
Milan are also supposedly closing in on a deal for Atalanta midfielder Franck Kessie, who was on Chelsea’s radar in January.