Aston Villa and Newcastle United could play a decisive role in João Palhinha's future, with Benfica increasingly reliant on the absence of a serious Premier League bid to land the Bayern Munich midfielder.
According to Portuguese outlets Jornal de Notícias and O Jogo, Benfica have identified the Portugal international as one of their priority signings but acknowledge they cannot compete financially if clubs from England enter the race.
With Bayern Munich ready to part ways with the experienced midfielder, Benfica have adopted a patient approach in the hope that the German champions will eventually lower their demands.
Benfica waiting for Bayern to soften stance
Rather than rushing into negotiations, Benfica are prepared to wait.
Club officials believe that if Palhinha remains without a concrete offer during the closing weeks of the transfer window, Bayern may become more flexible over both the transfer fee and the structure of a deal.
The Bundesliga champions are currently seeking more than €25 million (£21.7 million) for the 31-year-old and would prefer a permanent transfer rather than another loan spell.
Benfica, meanwhile, favour a loan agreement that includes either an option or an obligation to buy, allowing them to spread the financial commitment over a longer period.
Aston Villa and Newcastle remain major threats
While Benfica continue their patient strategy, Premier League interest remains their biggest concern.
The Portuguese reports again identify Aston Villa as one of the clubs capable of meeting Bayern's financial demands, while Newcastle United are also understood to be monitoring the situation following reports from ESPN Brazil journalist Bruno Andrade.
Either Premier League club would be able to match Bayern's valuation and cover Palhinha's wages far more comfortably than Benfica, making England the most attractive outcome from Bayern's perspective.
For Benfica, the ideal scenario is simple: no formal offer arrives from the Premier League before the transfer window closes.
Kompany confirms Palhinha is available
Bayern manager Vincent Kompany has already made the club's position clear.
Speaking ahead of Bayern's pre-season fixture against Jeju United, the Belgian confirmed that Palhinha, Sacha Boey and Bryan Zaragoza had all been informed they were not part of his plans for the upcoming campaign.
"At the beginning of the season we have to make decisions and then communicate them clearly. What Max [Eberl] and Christoph [Freund] said was first communicated to Sacha, João and Bryan. They know."
Kompany also stressed that the players deserve respect despite being placed on the transfer list.
"The most important thing is that, once everything is clear, we treat them with respect. As a former player, that's how I'd want to be treated."
Transfer battle enters crucial phase
With Bayern prepared to sell and Palhinha expected to leave this summer, attention now turns to whether Premier League clubs decide to formalise their interest.
Benfica remain hopeful that time will work in their favour, but any concrete move from Aston Villa or Newcastle could dramatically alter the landscape of negotiations and make it significantly more difficult for the Portuguese giants to complete the deal.
Key Points
- Benfica are waiting before making a move for João Palhinha.
- Bayern Munich want more than €25 million and prefer a permanent sale.
- Aston Villa and Newcastle United remain interested in the midfielder.
- Benfica hope no Premier League offer arrives before the transfer deadline.
- Vincent Kompany has confirmed Palhinha is not part of Bayern's plans.
What's next?
Benfica are expected to continue monitoring Palhinha's situation while waiting to see whether Aston Villa or Newcastle submit formal offers. Bayern remain open to negotiations, but their preference for a permanent transfer means the coming weeks could be decisive in determining whether the midfielder returns to Portugal or heads back to the Premier League.
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