According to La Gazzetta dello Sport, the Bundesliga side offered €8m for the centre-back, but Toro President Urbano Cairo deems the defender unsellable, also because after Milan's exclusion from Europe, Torino are expected to play in Europa League.
The 22-year-old joined the Granata in 2017 from Sao Paulo for €7m, but he only made 10 appearances for the Turin-based club before moving to Bologna on loan in January.
Lyanco has dual Serbian and Brazilian nationality and represented Serbia at U19 level before committing to Brazil.
He captained the Brazil U23 team as they won this year’s Toulon Tournament.
Meanwhile, Roma, Napoli, SPAL and Genoa have also been reportedly interested in the centre-back in recent weeks.