Manchester City reaches verbal agreement to sign Allan from Palmeiras for €40M

Manchester City has locked in personal terms with Palmeiras winger Allan Elias and is closing in on a transfer fee of €40 million plus add-ons, marking the club’s latest raid on Brazilian talent. The deal, while still awaiting a formal agreement between clubs, represents City’s direct response to losing Savinho, who is headed to Tottenham Hotspur in a deal worth approximately €100M. What we know about the deal Allan, whose contract with Palmeiras runs through December 2029, carries a reported release clause of €100M. City is not paying anywhere near that number. Negotiations between the two clubs intensified through mid-to-late August 2026, with Palmeiras initially rejecting City’s approach. The Brazilian side has been firm about wanting a fixed fee of at least €40M, pushing back against a structure that would have loaded the package with performance-based bonuses rather than guaranteed cash. That stance appears to have worked. The current agreement reportedly sits at €40M as a base, with add-ons layered on top. Personal terms between Allan and City have been settled, meaning the player himself is ready to go. What remains is the final handshake between boardrooms. Why Allan, and w...