Portuguese teenager Sanches has emerged as a transfer target for Milan, who reportedly want the 19-year-old on an initial two-year loan deal with the option to buy for €40million in 2019.
Sanches joined Bayern with the reputation as one of the best young players in Europe, but has seen his career stall in Germany so far, with some talk that he could leave already.
As for Sanches it's been a hard first season with the perennial Bundesliga champions after his big money move from Benfica following an impressive Euro 2016 campaign with Portugal.
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Police were trying to establish whether the woman had been known to the men, and if she had consumed drugs and alcohol. The men, all aged in their late 20s and early 30s, had travelled to Melbourne from the ACT and NSW for the party.
Renato Sanches could be on the move this summer.
He made just six starts in the Bundesliga and even dropped to Portugal's Under-21 squad despite playing a key role in their triumphant Euro 2016 campaign.
The Bavarians swooped to sign James Rodriguez on a two-year loan deal from Real Madrid last week, and it now looks as though that signing means they are no longer interest in Sanchez.
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Sanches couldn't break into Bayern's team.
"But we did not get any further".
'They reported midweek. And if you borrow a player from Bayern, that also has economic effects. At least I have the impression that AC Milan are not ready to meet our demands. At €48million (£42m) I would not be dissatisfied'.
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His statements came just a day before the Monsoon session of Parliament is slated to start. During the meeting various issues were discussed by the leaders.
The Bavarians considered making a move for him, but there have been suggestions that the German champions are anxious about the financial repercussions of the deal. Manchester City are understood to be stepping up their interest in the Chilean as a result of these comments, despite Gunners boss Arsène Wenger remaining adamant Alexis won't join the Sky Blues.