According to Portuguese newspaper Record, Tottenham Hotspur's buy-out clause for Palhinha will expire tomorrow (June 1st), but the player himself has clearly stated that he does not wish to stay in London, leading Tottenham Hotspur to withdraw from the race.
Palhinha is firmly set on returning to Sporting CP for personal family reasons. With Tottenham Hotspur's withdrawal, Sporting CP will negotiate directly with Bayern Munich. The deal is expected to be a loan with an immediate fixed fee payment, along with a mandatory buy-out clause.
Although Tottenham Hotspur previously had a reference price of 30 million euros for the Portuguese international, it is well understood by all parties that negotiating with wealthy Premier League clubs is one thing, and negotiating with Portuguese teams is another. The player's agent team will also be involved to try and persuade Bayern (to lower the price).
Palhinha's annual salary at Bayern is approximately 9 million euros (pre-tax), and he is willing to take a significant pay cut to return to Sporting CP, accepting a three-year contract or a three-year contract plus a one-year option.
Bayern coach Kompany has clearly stated that he does not intend to use this player, whose contract runs until 2028, which provides favorable conditions for negotiations. Sporting CP will offer Palhinha a captain's role and full trust, awaiting a final agreement with Bayern's management.