Fresh twist in Alphonso Davies, Bayern Munich, Real Madrid and Barcelona saga | OneFootball

Alphonso Davies has been offered another new and improved contract by Bayern Munich, reports in Germany claim, as the Bundesliga giants look to ward off interest from Barcelona and Real Madrid.

The 24-year-old's current Bayern contract expires at the end of the season and negotiations over an extension have long been at a standstill.

Bayern honorary president Uli Hoeness issued a public ultimatum to Davies in July, claiming the club would look to sell the Canadian international rather than risk losing him on a free transfer, should he and his representatives opt against lowering their demands.

Manchester United have subsequently been linked with Davies, with the Red Devils unable to keep Luke Shaw or Tyrell Malacia fit, but there's been a strong suspicion that Madrid or Barcelona are his most likely destination.

However, amid a glut of contrasting reports, German publication BILD report that Bayern have made a renewed effort to extend Davies' deal, having been impressed with his attitude and performances since Vincent Kompany took charge.

Davies is said to have received a new contract offer from Bayern, who are now waiting for the player and his entourage to assess the terms of the deal and return with an answer.

Vincent Kompany's Bayern are starting to find form after early indifferent results / Stefan Matzke - sampics/GettyImages

"The confidence is there. It just makes me feel positive when I see Phonzie every day - how he comes from, how he plays, how much fun he has training and playing," sporting director Christoph Freund said on Friday.

"This system, the way we play football at the moment, suits him extremely well. He feels extremely comfortable. He feels good in Munich and is playing at a really high level at the moment.

"It's very important for the team, he's playing a lot of minutes. That's the strongest argument. Phonzie wants to play football, wants to have fun on the pitch, wants to be successful. That's why things are going very well at the moment and we hope, of course, that this will continue to be the case for a long time."

It's alleged that Davies is looking to earn around €16m-per-year at Bayern - a figure the six-time European Cup/Champions League winners have thus far been unwilling to meet - but this latest development would suggest the Bavarian giants are at least trying to engage in a fresh negotiation.

Whether or not they are successful remains to be seen, particularly as BILD also report that Barcelona manager Hansi Flick is in favour of reuniting with Davies, whom he won the Champions League with in 2020.