Newcastle make Joao Palhinha move after Aston Villa deal breaks down

Newcastle United have reportedly offered Joao Palhinha a three-year contract, moving quickly for the Bayern Munich midfielder after Aston Villa's attempts to sign him hit a major roadblock.

Villa had been working on a deal for the 31-year-old and had already reached an agreement over personal terms. However, their proposed transfer structure has failed to convince Bayern, opening the door for Newcastle to enter the race.

According to journalist Diego Picó, Newcastle have now made their own move for Palhinha by offering the Portugal international a three-year contract.

There is no indication yet that Palhinha has accepted Newcastle's proposal, but the length of the contract suggests the Magpies are looking at a permanent transfer rather than the loan arrangement Villa had pursued.

That could prove important in negotiations with Bayern.

The Bundesliga champions want to sell Palhinha permanently and rejected Aston Villa's proposal of a loan with an option to buy.

If Newcastle are prepared to meet Bayern's demands with a permanent deal, they could immediately find themselves in a stronger negotiating position.

Villa's interest had advanced considerably before Newcastle entered the picture.

Sporting director Damian Vidagany confirmed talks with Bayern, while Palhinha had reportedly agreed personal terms over a move to Villa Park.

The major problem was finding an agreement between the clubs.

Bayern director Max Eberl has now publicly dismissed the prospect of reaching a deal with Villa under the proposed conditions.

"You've read that Aston Villa contacted us regarding Joao. That is true, but we won't reach an agreement with Aston Villa."

Eberl then made Bayern's position even clearer.

"It simply won't work. We aren't in a position where we have to do everything others try to impose on us."

Asked whether an agreement remained possible, he responded: "No chance of an agreement."

That breakdown has created the opportunity Newcastle are now trying to exploit.

Palhinha returned to Bayern this summer following his loan spell with Tottenham Hotspur, who decided against making the move permanent.

The midfielder has now accepted that he does not have a future under Vincent Kompany, with Bayern also encouraging him to find another club.

That leaves Palhinha with another major decision.

He had already agreed terms with Aston Villa, but Newcastle's three-year proposal provides a fresh Premier League option at a time when the Villa deal appears to have collapsed.

The next major question is whether Newcastle can reach the permanent agreement Bayern have been demanding.

Palhinha must now decide whether Newcastle's three-year proposal represents the right next step after seeing his potential move to Aston Villa stall.

For Newcastle, the crucial task will be reaching an agreement with Bayern. The German champions have made it clear they want a permanent solution, and Newcastle could have an advantage over Villa if they are prepared to structure their approach as an outright transfer.

If the Magpies can satisfy Bayern's demands and convince Palhinha, they could quickly turn Villa's failed negotiations into another significant addition for Matthias Jaissle.