Crystal Palace–Leicester transfer standoff: Bilal El Khannouss deal on hold

Bilal El Khannouss’s transfer saga has hit a major roadblock, with Crystal Palace and Leicester City locked in tense negotiations that have left the 20-year-old midfielder’s future hanging in the balance. Despite advanced talks earlier this month, the deal is now on hold, sources close to the discussions have confirmed.

Leicester’s relegation to the Championship has only intensified the situation. El Khannouss has made his intentions clear: he does not want to play second-tier football and is pushing for a Premier League move. Crystal Palace remain his preferred destination, but Leicester are reluctant to lose one of their standout creative sparks without a fight.

For Palace, who are rebuilding under Oliver Glasner, the Moroccan international represents exactly the kind of progressive midfielder they have been missing. But with Leicester holding firm over their valuation, the standoff is threatening to derail the transfer entirely. Could another club exploit the deadlock and hijack the deal?

El Khannouss has already underlined his quality this season despite Leicester’s difficult start in the Championship. In three matches, he has registered two assists, showing the vision and technique that made him a breakout talent last season in the Premier League.

According to Belgium outlet Het Laatste Nieuws, the player has told Leicester hierarchy he wants to leave. Palace, meanwhile, have been monitoring him since January, and sources suggest the Eagles are ready to table a structured package — though still below Leicester’s £30m valuation.

The gap in valuation is the main sticking point. For Leicester, losing their most creative midfielder without securing maximum value could undermine their promotion push. For El Khannouss, every extra week in the Championship feels like a wasted step in his development.

FootballPlace analyst John William believes Palace must act decisively:

“El Khannouss is tailor-made for Glasner’s vertical football. His ability to thread passes between the lines could transform Palace’s attacking transitions. The risk is that if Palace drag their heels, a rival like West Ham or Brighton could hijack the deal.”

Analyst John William added:

“From Leicester’s perspective, this is about survival. They’ve lost key assets already after relegation, and El Khannouss is their creative hub. Selling him too cheaply could ruin their promotion chances. But if he isn’t committed, keeping him might be just as damaging.”

Unless Palace raise their bid, the deal risks stalling beyond the transfer deadline. Leicester will not be forced into a sale, but player pressure could yet swing the negotiations.

For El Khannouss, the desire is simple: he wants Premier League football, and Crystal Palace offer that platform. With just a week left in the window, this saga looks set to go down to the wire — and one twist could decide whether Palace get their man or another club swoops in.

Should Crystal Palace push through the deal for El Khannouss now — or risk losing him to a rival?