Newcastle United remains one of the Premier League clubs after AllenBut Palmeiras are now moving to strengthen their position by agreeing a new contract for the midfielder.
Interest from England has surrounded the 21-year-old for several weeks. Newcastle have been repeatedly linked with the player and were Recently it has been reported that an envoy has been sent to Brazil To follow the situation closely.
Liverpool is also mentioned Recent coverage has featured fans, but journalist Andre Hernan has also hinted that Manchester United have joined the group of clubs keeping an eye on Allan.
Against that backdrop, Palmeiras appear to be working to protect their position ahead of the next transfer window.
Palmeiras is preparing another contract renewal
But I am saying ESPN Brazil's live program Fala a FonteJournalist Bruno Andrade reported that Palmeiras have recently held fresh talks about renewing Allan's contract.
The midfielder has already had his deal renewed several times in a short period. In 2024 his contract was extended to 2027, and in 2025 the club extended it further to 2029. Now Palmeiras is discussing another upgrade.
According to Andrade, positive progress was made at a meeting last week. And he said the current negotiations could result in a longer contract and better financial terms for the player.
He said: "There were meetings last week and discussions were very positive regarding another renewal. We still need to confirm whether this contract will be extended to 2030 and whether it only includes a salary increase or a higher release clause."
The journalist also stressed that Palmeiras wanted to reward the player and at the same time protect themselves from increasing interest from abroad.
European interests are driving Palmeiras' strategy
The renewed talks are taking place in the context of strong European interest, including from Newcastle United. According to the ESPN discussion, Palmeiras has already rejected the offer The price for Allan is estimated to be between €30m and €35m (£25.7m-£30m).
Andrade confirmed that if Palmeiras ultimately decides to sell, the valuation would need to climb well above that range.
He said: “When Palmeiras thinks about selling Allan – which is not in the board's plans right now – the number being discussed is upwards of €40m.”
Even that price may not come as a single fixed payment. The panel suggested a deal worth around €40m (£34.3m) would include performance bonuses rather than a guarantee fee.
Andrade explained: "According to what people say in the market, €40m would probably be in a structure with just fixed money and bonuses. Something like €30m plus €10m, or €20m plus €20m."
Why could the next transfer window be decisive?
Journalist Felipe Silva said 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 parties. The club protects itself from interest and the player becomes more expensive."
Silva pointed out that raising wages and extending contracts automatically increases the price paid to European clubs.
he adds: "If the player earns
The journalist also suggested that the next transfer window could bring serious offers. He said: "In the middle of the year, there will be heavy clubs coming to try to sign Alan."
Our View: Palmeiras' leverage is increasing
Palmeiras' strategy is becoming increasingly clear. With Newcastle United and other Premier League clubs circling, the Brazilian side are looking to increase Allan's value ahead of the next transfer window.
Extending the player's contract gives Palmeiras a strong advantage and ensures that any future negotiations will start with a high valuation.
It also buys the Brazilian club time. They could keep a key player for their playing project and wait to see how far European clubs are willing to go once the next transfer window opens.
