Aston Villa remain interested in João Palhinha, but the Premier League club are reluctant to meet Bayern Munich's €25 million asking price, with talks instead centred on a potential loan deal.
The Portugal international is expected to leave Bayern before the transfer window closes, but the Bundesliga champions are holding firm in their desire to secure a permanent sale rather than another temporary move.
Aston Villa prefer loan agreement
According to the BILD, Aston Villa are continuing to assess a move for Palhinha but are not prepared to pay Bayern's current valuation.
Instead, Villa are exploring the possibility of an initial loan deal with an option to buy, allowing them to spread the financial commitment.
However, that proposal falls short of Bayern's expectations, with the German champions prioritising an outright sale.
Bayern keen to raise transfer funds
Palhinha is one of several players Bayern are hoping to move on this summer as they look to reshape their squad.
The midfielder returned from a successful loan spell at Tottenham last season, where he rebuilt his reputation after struggling to establish himself in Munich.
Bayern had hoped Spurs would make the move permanent, but the North London club have opted against pursuing a deal.
Family reasons influence transfer plans
Despite attracting interest from clubs in Saudi Arabia and Türkiye, Palhinha is reportedly keen to remain in Europe.
The 30-year-old is understood to be prioritising family considerations, wanting to stay close to his children in Portugal.
A return to the Portuguese league would appeal, but neither Sporting CP nor Benfica are currently in a position to finance a deal.
Villa decision could shape transfer
Bayern sporting director Max Eberl is believed to view Aston Villa as the club's strongest opportunity to complete a permanent transfer.
Villa have generated significant funds through player sales this summer but have also invested heavily in strengthening Unai Emery's squad.
Unless Villa change their position and agree to Bayern's valuation, negotiations could continue for some time.
Key Points
- Aston Villa are reluctant to pay Bayern Munich's €25 million asking price for João Palhinha.
- Villa are instead proposing a loan with an option to buy.
- Bayern want a permanent sale this summer.
- Palhinha prefers to remain in Europe despite interest from Saudi Arabia and Türkiye.
- Family considerations are influencing the midfielder's decision.
What's Next?
Negotiations between Aston Villa and Bayern Munich are expected to continue as both clubs try to find common ground. Whether Villa decide to increase their offer could determine if João Palhinha completes a Premier League return this summer.
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