Joao Palhinha close to joining Benfica | OneFootball

Bayern Munich midfielder Joao Palhinha is reportedly closing in on a permanent move to Benfica.

Joao Palhinha: Transfer situation at Bayern Munich

Palhinha joined Bayern from Fulham in the summer of 2024 for a substantial fee, but the midfielder struggled to establish himself under Vincent Kompany.

It quickly became apparent that the defensive midfielder was not a natural fit for Kompany’s preferred system, leaving Bayern keen to find a solution for his future.

Aston Villa and Newcastle United were both credited with an interest, while Villa even held talks over a potential deal for the Portugal international.

Christian Falk explained to CFBayern Insider the extent of Villa’s pursuit:

We talked with Aston Villa’s director of football, Damian Vidagany, who told us at BILD about the Villans’ clear interest in João Palhinha. So, you can see there that he wanted to make a statement about this deal.

There are, however, still two problems, and both of them revolve around money. Bayern Munich are insisting on €30m [£25.6m] from Aston Villa, as they’re fully aware that Premier League clubs can afford this. It’s not like talks with Benfica or Sporting Lisbon (two clubs that are also interested in the player). Aston Villa have the money, and it’s clear they need the player, so this is why Bayern hopes to finalise this deal.

Before, everyone was fully aware that FC Bayern wanted to offload the holding midfielder. But the difference is that now there is a club that needs Palhinha. This is why I’m confident that Bayern Munich and Aston Villa will find a solution.

Villa eventually withdrew from the race, however, leaving Benfica with a clearer path towards bringing Palhinha back to Portugal.

Joao Palhinha on his way to joining Benfica?

We can exclusively confirm that Joao Palhinha is now edging closer to joining Benfica.

Christian Falk has told CFBayern that Bayern and the midfielder need to reach an agreement, with his sizeable salary proving to be an important factor in the negotiations.

Portuguese sources indicate that talks have made significant progress in recent hours, with the two clubs now working through the final details of a deal for the midfielder.

The eventual package is expected to fall well below Bayern’s initial €25m asking price, with our information suggesting that Benfica will pay €14m upfront, plus a further €5m in performance-related bonuses.

Of the €5m in potential add-ons, €3m are understood to be readily achievable, while the payments themselves will be spread over a four-year contract until 2030.

After several days of patient negotiations and pressure on Bayern, Benfica and the German champions are now reportedly only a handful of clauses away from completing the agreement.

Palhinha is therefore increasingly likely to return to the club where he began his senior career, with the midfielder set to earn a net salary of €2.5m per season alongside a signing bonus worth around €1m.