Manchester City close in on £35m Allan Elias deal as Palmeiras boss explains huge appeal

Manchester City are closing in on Palmeiras’ demands for Allan Elias, with those involved in negotiations reportedly expecting the Premier League side to reach the Brazilian club’s €40million (£34.6m) asking price.

City are currently prepared to guarantee €35m (£30.3m), leaving a gap of just €5m (£4.3m) between the clubs.

Counterproposals are now being discussed and negotiations are expected to advance in the coming days.

Palmeiras initially had no intention of selling Allan during the Brazilian season, but Manchester City convinced them to enter negotiations.

The Brazilian club are now demanding €40m (£34.6m) guaranteed, with bonuses potentially added on top.

Another possibility would see Palmeiras retain a percentage of the profit from any future City sale.

Palmeiras own 90 per cent of Allan’s rights, meaning a €40m fixed transfer would guarantee them €36m.

The expectation surrounding negotiations is that City will eventually bridge the remaining €5m gap.

Palmeiras manager Abel Ferreira has now addressed the interest and highlighted the versatility that makes Allan such an attractive prospect.

“These teams want players like Allan because he does what 90% of the wingers here can’t do: attack and defend along the flank for 90 minutes,” Ferreira said.

The Palmeiras boss believes Allan's ability to operate in several roles makes him particularly suited to European football.

He can play as a winger, right-back or on the outside of a back three while also moving centrally to combine with teammates.

“The best teams in the world don’t buy half-players,” Ferreira added. “They buy players who attack and defend.”

Allan has made 96 appearances for Palmeiras, producing nine goals and 12 assists. His development has accelerated in 2026, with six goals and five assists this year.

Ferreira insists he still considers Allan an important part of his squad, but acknowledged what Palmeiras would lose if the transfer is completed.

“If he leaves, we lose quality, but not competitiveness,” he said.

“As long as he’s a Palmeiras player, I’m counting on him morning, afternoon and night.”

There was also an interesting moment following Palmeiras’ victory over Vasco da Gama on Sunday.

Allan embraced his teammates before later returning to the pitch for photographs with his family. It has not been described as an official farewell, but Palmeiras now face three consecutive away matches and will not play at home again until September 9.

Negotiations are expected to intensify at the beginning of the week, with Manchester City now close to the figure Palmeiras require. If City add the remaining €5m to their guaranteed offer, the deal could quickly move towards completion.

Would Allan Elias be another smart Manchester City investment, or is £35m a major gamble on the 22-year-old?