Bayern Munich defender Dayot Upamecano has reportedly issued a final ultimatum to the club regarding his contract extension. The French international is entering the final six months of his deal and has made it clear that European giants Real Madrid and Paris Saint-Germain are ready to meet his financial requests if the Bundesliga leaders fail to match his expectations before January.The standoff between Bayern Munich and their star centre-back has reached a critical juncture. According to a report from Kicker, Upamecano’s camp has informed the Bavarian hierarchy that negotiations are now effectively closed unless their specific financial terms are met. The 27-year-old, whose current contract expires in June 2026, is free to sign a pre-contract agreement with foreign clubs as early as January 1, giving Bayern just weeks to secure his future or risk losing a key asset for nothing.The defender has been a pillar of stability under Vincent Kompany this season, featuring in 20 matches across all competitions. However, his representatives have grown frustrated with the pace of talks and the club’s reluctance to break their wage structure. Kicker and Sport Bild both report that Upamecano has demanded an annual salary of €16 million, including bonuses, alongside specific release clauses that would grant him future control over his career path.The crux of the issue lies in Bayern's recent efforts to trim their wage bill under sporting director Max Eberl. While the club view Upamecano’s renewal as a priority, they are hesitant to bow to "non-negotiable" demands that would place him among the highest earners in the squad. However, the player’s camp argues that his performances warrant such a status, especially given the market value of elite defenders in their prime.The ultimatum puts immense pressure on Eberl and the Bayern board. If they refuse to accede to the €16m package, Upamecano is prepared to run down his contract. Losing a player valued at around €60 million on a free transfer would be a significant financial blow, echoing the painful departure of David Alaba to Real Madrid. Looking for smarter football bets? Get expert previews, data-driven predictions & winning insights with GOAL Tips on Telegram. Join our growing community now!Adding to Bayern's headache is the genuine interest from Europe’s financial heavyweights. The report claims that both Real Madrid and Paris Saint-Germain have indicated a willingness to meet Upamecano’s demands fully. For Madrid, the Frenchman represents the perfect long-term successor to the aging duo of Alaba and Antonio Rudiger. His availability on a potential free transfer fits Florentino Pérez’s recent recruitment strategy perfectly.Meanwhile, PSG are eager to bring the French national team star back to his homeland. The Parisian club sees him as a cornerstone for their defence and has the financial muscle to offer a lucrative signing bonus that Bayern may struggle to match. With these suitors waiting in the wings, Upamecano’s warning is not an empty threat; he has concrete exit routes available should Bayern blink.The potential exit of Upamecano would be a sporting disaster for Vincent Kompany. The Belgian coach has built his high defensive line around the Frenchman’s recovery pace and ball-playing ability. With summer signing Hiroki Ito still integrating and Josip Stanisic offering a different profile, Upamecano has been the undisputed leader at the back. Kompany has publicly praised the defender's form this season, but his influence may not be enough to sway the boardroom if the financial gap remains too wide. Bayern have reportedly begun scouting alternatives, including Borussia Dortmund’s Nico Schlotterbeck, but replacing a player of Upamecano’s specific skillset and experience in the January window would be a near-impossible task.Add GOAL.com as a preferred source on Google to see more of our reportingBayern face a definitive deadline. They have until the turn of the year to find a compromise before Upamecano can legally commit to a move abroad. The upcoming weeks will likely see a final round of high-stakes poker between Eberl and the player's agents. If no white smoke appears before January 1, the Allianz Arena faithful may have to prepare for life without their defensive rock next season.