Bayern Munich have agreed to sign the Fulham midfielder João Palhinha in a deal worth up to €56m (£47.4m).

Palhinha almost moved to the Allianz Arena last year, only for the deal to break down on the final day of the transfer window.

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Bayern’s interest has not gone away and they are set to pay an initial €51m plus €5m in add-ons for the Portugal international, who has been waiting for the green light to move to the Bundesliga club. The sale will be a club record for Fulham, who will need to use the funds to bolster their midfield.

Palhinha, who will undergo a medical after Euro 2024 before signing a four-year deal, has been a key player for Marco Silva since joining from Sporting two years ago. He has provided steel for Fulham and helped them establish themselves in the Premier League since winning promotion in 2022.

Bayern Munich finished third in the Bundesliga last season, 18 points behind champions Bayer Leverkusen. They were eliminated by Real Madrid in the semi-finals of the Champions League and failed to win the German Cup. Thomas Tuchel left at the end of the campaign and has been replaced by Vincent Kompany, who was previously at Burnley.