Aston Villa have agreed personal terms with Joao Palhinha, but negotiations with Bayern Munich have hit a major snag as the two clubs remain apart over the structure of the deal.

The Premier League club is actively seeking midfield reinforcements to cover for Amadou Onana’s long-term injury, with Villa manager Unai Emery identifying Palhinha as a top priority.

However, while the player is eager to return to England, the deal remains stalled at the club level.

Sky Sports journalist Florian Plettenberg provided a key update on X regarding the state of negotiations between Villa and the Bavarian giants.

“EXCL | Aston Villa are currently offering FC Bayern a loan with an option to buy for Joao Palhinha,” Plettenberg reported. “Bayern are rejecting this proposal. For now, a permanent transfer remains the priority. Personal terms between Palhinha and Aston Villa have been fully agreed for several days. Villa boss Damian Vidagany has spoken publicly. It is now only down to the clubs. Palhinha is waiting for a decision.”

?? Aston Villa are currently offering FC Bayern a loan with an option to buy for Joao Palhinha.

Bayern are rejecting this proposal. For now, a permanent transfer remains the priority.

Personal terms between Palhinha and Aston Villa have been fully agreed for several days.… pic.twitter.com/f6HqvEMz1b

— Florian Plettenberg (@Plettigoal) August 12, 2026

Bayern are demanding a permanent transfer worth around €25 million to offload the 31-year-old Portuguese international.

Villa, on the other hand, prefer a initial loan move with a purchase option. With Vidagany publicly confirming interest and Palhinha waiting on standby, finding common ground on the fee structure remains the sole obstacle.

Meanwhile Newcastle are also strongly interested in the midfielder after losing Sandro Tonali and Bruno Guimaraes in the same transfer window.

Palhinha impressed at Spurs but club decided against signing permanent

Palhinha spent the 2025/26 campaign on loan at Tottenham Hotspur after struggling for regular starting minutes under Vincent Kompany during his initial season at Bayern.

The midfielder impressed during his spell in North London, rediscovering his best form and providing a robust defensive presence along with 10 goal involvements across all competitions.

Despite his impactful individual performances, Spurs ultimately decided against triggering their £26 million option to make his stay permanent, sending him back to Munich.

With Kompany deeming him surplus to requirements at Säbener Straße, Palhinha is keen to secure a fresh start.

Aston Villa represent his preferred destination, but both clubs must reach a compromise before the summer transfer window closes.