Newcastle eye Palmeiras star with €100m release clause as January transfer window looms

According to ESPN Brazil, Palmeiras have outlined a plan to generate €70m (£61m/$82m) from new player sales in 2026. The club will count only fresh transactions, excluding any instalments from past deals, and view Allan as a prime candidate to command a major transfer fee. Having developed into Abel Ferreira’s go-to "utility player", featuring across multiple positions and delivering decisive moments in crucial matches, the youngster is now counted among the club’s most valuable assets. 

Newcastle, aware of Palmeiras’ willingness to negotiate, are said to be ready to make a significant investment. The Palmeiras hierarchy admits that no player is considered "untouchable" for the 2026 season. Should a suitable proposal arrive, Allianz Parque officials are prepared to sanction a sale that supports their revenue objectives. Palmeiras have already turned down a €20m (£17m/$23m) bid from Zenit and expect future offers to approach at least €32m (£28m/$37m). While Allan’s release clause gives the club substantial leverage, their urgent financial targets increase the likelihood of movement in 2026 if negotiations progress. And the midfielder’s situation is being monitored closely in England, where Newcastle have been tracking him as part of their long-term squad rebuild. 

If Allan does depart, it would follow a growing pattern of record-breaking sales by Palmeiras in recent years. Their academy pipeline has become one of the most profitable in world football, producing talents snapped up by Europe’s biggest names. Endrick’s monumental €72m (£63m/$84m) switch to Real Madrid in 2022 set a new bar for Brazilian exports. That was followed by Estevão’s €61.5m (£54m/$72m) move to Chelsea, Luis Guilherme’s €23m (£20m/$27m) transfer to West Ham, and the most recent agreement for teenage defender Vitor Reis, whose €37m (£33m/$43m) package, €35m (£31m/$41m) of which goes directly to Palmeiras, further swelled the club’s coffers. Against this backdrop, Allan stands out as the next likely high-value departure. With the January window looming and Palmeiras openly embracing negotiations as part of their long-term financial planning, Newcastle’s interest comes at precisely the right moment.

In parallel with their pursuit of Elias, Newcastle are also keeping a close eye on Inter Milan’s Davide Frattesi. The Italian midfielder, who was strongly linked with the Magpies last summer, has seen his playing time shrink dramatically under new manager Cristian Chivu. Sport Witness reported that Newcastle were keen to sign the 26-year-old during the last transfer window, only for Inter to block the move following Simone Inzaghi’s departure. But with Frattesi logging fewer than 200 minutes in Serie A this season, a January move is now considered "very likely,” according to Tuttomercatoweb.

Eddie Howe has repeatedly expressed his desire to expand his midfield options, particularly after injuries to Joe Willock and Lewis Miley disrupted Newcastle’s rhythm earlier in the campaign. The Magpies eventually secured Jacob Ramsey from Aston Villa, but Howe made no secret of his concern that the squad were operating with fewer central midfielders than he wanted. Despite their interest in Allan, Howe has sought to temper expectations about Newcastle making extravagant purchases in January as the club remain tightly constrained by the Premier League’s profit and sustainability rules (PSR).

At the time, he said: "We want six [midfielders] and now we are down to four. That is an issue for us and it is a position we are looking at."

"Certainly paying fees like that (£100 million), and I am not sure we are going to be in a position to do that. I am talking about that without any knowledge on January. It is just not really a window that big fees are usually paid. There is always a long-term management of PSR and long-term management on our financial situation. We can’t let one transfer unbalance that."

Newcastle currently sit 12th in the Premier League and face Burnley on Saturday.