Newcastle United remain one of the Premier League clubs closely following Allan, but Palmeiras are now moving to strengthen their position by preparing a new contract for the midfielder.
Interest from England has surrounded the 21-year-old for weeks. Newcastle have repeatedly been linked with the player and were recently reported to have sent an emissary to Brazil to follow the situation closely.
Liverpool have also been mentioned as admirers in recent coverage, but journalist André Hernan has also indicated that Manchester United have joined the group of clubs tracking Allan.
Against that backdrop, Palmeiras appear to be acting to protect their position before the next transfer window.
Palmeiras preparing another contract renewal
Speaking on ESPN Brazil’s live programme Fala a Fonte, journalist Bruno Andrade explained that Palmeiras have recently held fresh talks about extending Allan’s contract again.
The midfielder has already renewed his deal multiple times in a short period. In 2024 his contract was extended until 2027, and in 2025 the club pushed that further to 2029. Now Palmeiras are discussing yet another upgrade.
According to Andrade, a meeting last week produced positive progress. And he added that the current negotiations could result in a longer contract and improved financial terms for the player.
He said:“There were meetings last week and the discussions were very positive regarding another renewal. We still need to confirm whether it will extend the contract to 2030 and whether it includes only a salary increase or also a higher release clause.”
The journalist also stressed that Palmeiras want to reward the player while simultaneously protecting themselves against growing interest from abroad.
European interest driving Palmeiras’ strategy
The renewed talks are happening in the context of strong European interest, including from Newcastle United. According to the ESPN discussion, Palmeiras have already rejected offers worth between €30m and €35m (£25.7m-£30m) for Allan.
Andrade confirmed that if Palmeiras eventually decide to sell, the valuation would need to climb well beyond that range.
He said:“When Palmeiras think about selling Allan – which is not something in the board’s plans right now – the numbers being discussed are above €40m.”
Even that price may not come in the form of a single fixed payment. The panel suggested that a deal around €40m (£34.3m) would likely involve performance bonuses rather than a guaranteed fee.
Andrade explained:“From what people in the market say, €40m would probably only happen in a structure with fixed money plus bonuses. Something like €30m plus €10m, or €20m plus €20m.”
Why the next transfer window could be decisive
Newcastle United
Journalist Felipe Silva added that the contract renewal strategy also serves another purpose: strengthening Palmeiras’ negotiating power ahead of the summer window.
He said:“This kind of renewal helps both sides. The club protects itself from interest and the player becomes more expensive.”
Silva explained that increasing the salary and extending the contract automatically raises the price European clubs must pay.
He added:“If the player earns X and you renew him for X plus two, the European market comes with three times that. They need to cover that difference.”
The journalist also suggested that the next transfer window could bring serious offers. He said:“In the middle of the year, heavy clubs will arrive to try to sign Allan.”
Our take: Palmeiras increasing leverage
Palmeiras
Palmeiras’ strategy is becoming increasingly clear. With Newcastle United and other Premier League clubs circling, the Brazilian side are trying to increase Allan’s value before the next transfer window.
Extending the player’s contract gives Palmeiras stronger leverage and ensures that any future negotiations start from a higher valuation.
It also buys the Brazilian club time. They can keep an important player for their sporting project while waiting to see how far European clubs are willing to go once the next transfer window opens.