João Palhinha is set to return to Portuguese football after Benfica reached a verbal agreement with Bayern Munich for the experienced midfielder.
The clubs have agreed a deal worth an initial €14 million, with a further €5m available in add-ons, potentially taking the total package to €19m. Transfer documents are expected to be exchanged within the next 24 hours as Benfica president Rui Costa moves to finalise the signing.
The breakthrough comes after Palhinha gave his approval to the move, clearing a major hurdle in negotiations. Reports in Portugal had already indicated that Benfica and the Portugal international had made significant progress over personal terms.
Benfica’s successful move follows the collapse of Aston Villa’s attempts to bring Palhinha back to the Premier League.
Villa had been negotiating with Bayern and initially explored a loan arrangement, but the German champions wanted greater certainty over a permanent departure. Bayern sporting director Max Eberl subsequently confirmed that the proposed Villa move had fallen through after the clubs failed to reach an agreement.
That opened the door for Benfica to accelerate their pursuit.
The Portuguese giants had been interested in Palhinha earlier in the window and returned with an improved permanent proposal. Negotiations have now produced a verbal agreement significantly below some of the valuations previously associated with the midfielder.
For Palhinha, the move represents a return to familiar territory.
The 31-year-old developed through Sporting CP’s academy and eventually became an important member of their first team, helping the Lisbon club win the Primeira Liga in 2020/21.
His performances earned him a move to Fulham in 2022, where his aggressive ball-winning style quickly established him as one of the Premier League’s leading defensive midfielders.
Bayern eventually signed Palhinha from Fulham in July 2024 for €51m plus a potential €5m in bonuses. However, his first season in Germany was disrupted by injuries and intense competition for midfield places.
He subsequently spent last season on loan at Tottenham Hotspur before returning to Bayern this summer.
With Palhinha no longer considered central to Bayern’s plans, the Bundesliga club have been looking for a permanent solution rather than another temporary move. That stance contributed to the failure of Villa’s pursuit and ultimately created the opportunity for Benfica.
The transfer is not formally complete, with documents still to be exchanged and the usual final formalities to follow.
However, with Bayern and Benfica verbally agreed and Palhinha giving the move his green light, the Portugal international is now on course to continue his career in Lisbon this time wearing the colours of Sporting’s great rivals.
