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The Portugal international was integral as Milan ended an 11-year wait for the Scudetto last season, scoring 11 Serie A goals for Stefano Pioli's title-winning side.
That led to increased speculation over a move away, with the likes of Real Madrid, Liverpool and Paris Saint-Germain credited with an interest in the forward.
With the 23-year-old's contract set to expire in June 2024, Milan remains confident it can agree fresh terms as Leao's agent Ted Dimvula reiterated his client's desire to stay at San Siro.
"There is a lot of false and misleading information about Rafael Leao, mainly in the Italian press," Dimvula said.
"This has only one purpose: to paralyse the cordial and professional dialogue that we have with the Milan management regarding the extension of Rafael's contract.
"We are currently working together to find a satisfactory solution for all parties."
Pioli's side have failed to win their last six games across all competitions and are now fifth in Serie A, 15 points adrift of runaway leaders Napoli.
Leao was dropped to the bench for Monday's (AEDT) 5-2 defeat against Sassuolo, sparking reports the former Sporting CP forward wanted a move away and was trying to lower his release clause.
However, Dimvula has no doubts the former Sporting CP forward intends to "progress" with Milan.
"The player's priority has not changed: he wants to stay at Milan and continue to grow and progress at this club and in this city that he loves so much," he added.
"We therefore firmly deny any desire on the part of Rafael and his entourage to lower his release clause in order to facilitate a departure of the player next summer.
"Rafael is completely focused on the important goal at hand with his current club, and he hopes, in this difficult period, to be able to let him work calmly and serenely to return to winning ways."