The 27-year-old defender's contract at the Allianz Arena is set to expire on 30 June. With the France international now in the final year of his deal, he will be eligible to sign a pre-contract agreement with foreign clubs in less than two months.
This precarious situation has reportedly alerted Europe's elite, including Real Madrid and Liverpool, forcing Bayern to accelerate negotiations. The public confirmation from Freund comes after president Herbert Hainer recently emphasised the club's hope that Upamecano will sign a new deal.
"It's no secret that our main goal is to extend Upamecano's contract," Freund said in a press conference. "It's also not surprising that many clubs, I don't know which ones, are interested in Upamecano because he's simply performing really, really well, is a great guy, and one of the best centre-backs in the world."
Freund noted that the player's current form, which has seen him make 19 appearances across all competitions this season, is a sign of his contentment in Munich.
The French international feels "very, very comfortable," Freund added, stating that is evident in "the energy he exudes" on the field.
However, the sporting director conceded that an agreement is not imminent, stating: "We are in talks, but there is nothing new to report at the moment."