Is this grammatically correct? What does it mean and can it be rephrased? “We can stay friends. Or we can stay as friends”

Yes, the sentence is grammatically correct. It conveys the idea that there are two options regarding the relationship: either remain friends or maintain the same friendship status without any changes. Here are a couple of rephrased versions: 1. "We can remain friends, or we can continue being friends." 2. "We have the option to stay friends, or we can just keep our friendship as it is." Both maintain the original meaning but use slightly different wording.