Aston Villa have been handed a major boost in their pursuit of João Palhinha, but they still have work to do before the Portugal midfielder can return to the Premier League.

Villa have spent much of the summer reshaping Unai Emery's midfield.

Youri Tielemans has left for Man United, while Amadou Onana's serious ACL injury created an urgent need for another powerful option in the centre of the pitch.

João Gomes and Johan Manzambi have already arrived. Even so, Villa want an experienced holding midfielder who can protect the back four, win duels and handle the demands of Champions League football.

Palhinha fits that job perfectly.

The 31-year-old knows English football inside out after two seasons with Fulham and a year on loan at Tottenham. He is aggressive without the ball, dominant in the air and comfortable doing the hard work that allows more creative teammates to push forward.

Villa director of football operations Damian Vidagany has publicly confirmed discussions with Bayern Munich, but the problem is the shape of the deal.

Emery's side have been pushing for a loan with an option to buy. Bayern, having already sent Palhinha to Tottenham for a season, want a permanent sale and are believed to value him at between £21 million and £26 million.

That difference has stopped Villa from making the decisive breakthrough.

Bayern are trying to recover part of the large fee they paid Fulham in 2024. They also want to remove a senior salary from their books rather than delay the issue for another year.

Villa can point to Palhinha's strong return in north London, with the player bagging seven goals and three assists across 45 appearances for Tottenham, including the decisive strike against Everton that helped keep Spurs in the Premier League on the final day.

Tottenham had the chance to buy him for about £26 million but chose not to activate the option, despite Palhinha making clear that he would have welcomed a permanent stay.

That opened the door for Villa, although Newcastle have since entered the race.

The Magpies are reportedly prepared to offer Palhinha a three-year contract and appear more open to discussing the permanent transfer Bayern want.

However, Diego Picó has now delivered the update Villa supporters wanted to hear.

Palhinha makes Villa or Newcastle preference clear after Bayern message

The Marca journalist claims Palhinha has informed Bayern that he would prefer to join Aston Villa rather than Newcastle.

It is a significant show of intent from the player, who would be joining a club back in the Champions League and working under one of Europe's most respected coaches.

Picó also stresses that the situation remains open, though, so Villa aren't out of the woods yet.

Palhinha's choice gives Villa leverage, but it does not solve the disagreement with Bayern. Unless Villa improve the structure of their proposal, Newcastle can remain hopeful.

Emery now has a midfielder ready to say yes, but Villa must decide whether they are prepared to quickly make Bayern an offer that gets the same answer.