Manchester City are expected to meet Palmeiras’ €40m (£34.6m) asking price for Allan Elias, with negotiations moving towards a decisive stage.
The Premier League side have indicated they are prepared to pay €35m (£30.3m) guaranteed. Palmeiras won’t sell at that price and want another €5m (£4.3m).
Globo Esporte report counterproposals are now being discussed. Those involved believe Manchester City will eventually reach the €40m (£34.6m) fixed fee Palmeiras want.
There’s an expectation the negotiations will advance at the beginning of this week.
Meanwhile, manager Abel Ferreira has spoken at length about Allan’s situation. He admits Palmeiras could lose one of their most important players.
Manchester City €5m short of Palmeiras minimum demand
Palmeiras initially had no intention of selling Allan Elias during their title challenges. Manchester City eventually convinced them to open negotiations, helped by the good relationship between the clubs.
The discussion is now focused on the financial package. Globo Esporte say Palmeiras want €40m (£34.6m) guaranteed before agreeing to release the 22-year-old.
Bonuses could then be added on top. Palmeiras could alternatively retain a percentage of the profit from a future Manchester City sale.
There’s a financial reason for their insistence on the guaranteed amount. Palmeiras own 90% of Allan’s rights. A €40m (£34.6m) fixed fee would therefore guarantee them €36m (£31.1m).
That’s more than they received from the guaranteed part of Estêvão’s move to Chelsea. Palmeiras owned 70% of Estêvão and received €31.5m (£27.2m) from his €45m (£38.9m) fixed fee. That transfer also included another €16.5m (£14.3m) in potential bonuses.
The expectation among those involved is that Manchester City will bridge the remaining gap for Allan.
Abel explains why City want Allan
Ferreira was inevitably asked about Manchester City’s pursuit after Sunday’s victory over Vasco da Gama. As relayed by ESPN Brazil, he used the opportunity to explain what makes Allan particularly attractive to Europe’s biggest clubs.
“These teams want players like Allan because he does what 90% of the wingers here can’t do: attack and defend along the flank for 90 minutes,” Ferreira said.
“If they want that type of player, they’ll have to pay €100m. Whoever wants him will have to pay a lot.”
Ferreira then expanded on Allan Elias’ tactical qualities.
“The Europeans don’t only buy players who attack. So when one appears who can defend along the flank all the time, play at right-back, play outside in a back three and come inside to combine, everyone wants players like that.”
He later summed up his thinking more directly: “The best teams in the world don’t buy half-players. They buy players who attack and defend.”
Allan demonstrated that side of his game against Vasco. He made four tackles, the joint-highest total in the match alongside Barboza. His one-on-one ability has also made him an important part of Ferreira’s current system on the right.
Unlike some Palmeiras academy stars, Allan wasn’t rushed into senior football at a particularly young age.
He progressed through the age groups before Ferreira promoted him permanently when he was reaching the end of his Under-20 eligibility.
Allan has since made 96 appearances for Palmeiras, scoring nine goals and adding 12 assists. Six of those goals and five assists have come during 2026.
“If he leaves, we lose quality”
Ferreira eventually addressed the possibility that Manchester City’s pursuit ends with Allan Elias leaving.
“I don’t want to talk too much about Allan because I don’t know what’s going to happen,” he said.
“If he leaves, we lose quality, but not competitiveness. I don’t know if we’ll go into the market. But 40 million for one player… congratulations to the coaching staff, our president, the academy and the player.”
“Whether he’s been sold or not, I don’t know. For now, he’s our player. And he’s not the first, fourth or fifth we’ve sold for figures like that and with that quality.”
It’s interesting because Ferreira publicly mentioned the €100m (£86.5m) release clause, but then discussed the possibility of a €40m (£34.6m) transfer. Either way, he made clear Allan remains available to him until anything is completed.
“As long as he’s a Palmeiras player, I’m counting on him morning, afternoon and night,” Ferreira said.
But there was also an interesting scene after Sunday’s victory. Allan embraced his teammates at full-time. He then returned to the pitch to take photographs with his family.
That doesn’t necessarily mean it was a farewell, but the timing is telling. Palmeiras now have three consecutive away matches. Their next home game isn’t until September 9, just two days before Brazil’s transfer window closes.
Farewell may have already happened
If Allan’s move to Manchester City progresses as expected, Sunday may therefore have been his last realistic opportunity to have that moment at home with his family.
Globo Esporte don’t describe it as a goodbye, so we shouldn’t either. Given the calendar and the stage of negotiations, though, the possibility is difficult to ignore.
For now, Allan Elias remains Ferreira’s player. Manchester City are €5m (£4.3m) short of the guaranteed figure Palmeiras want, and those involved in the talks expect them to close that gap.
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