Bad news for Real Madrid and Liverpool as Bayern Munich near agreement with Dayot Upamecano but signing bonus dispute holds up contract renewal

According to BILD, Bayern's efforts to renew Upamecano’s contract beyond 2026 have hit a snag, despite both sides agreeing on most terms. Negotiations are said to be “nearly complete” but remain blocked by one crucial issue, the signing bonus. Upamecano, who joined Bayern from RB Leipzig in 2021, is seeking parity with teammate Davies, who received around €17 million (£14m/$19m) for signing his latest extension earlier this year.

The Bavarian giants, however, are reluctant to match that figure, as with expensive renewals already handed to Davies, Joshua Kimmich, and Jamal Musiala, sporting director Max Eberl is under pressure to control wage spending. Club president Herbert Hainer confirmed at Oktoberfest: "The talks are ongoing, Max Eberl and Christoph Freund are handling them. And of course, I hope that Dayot will stay with us for a long time."

Upamecano’s strong performances under boss Vincent Kompany have solidified his place in Bayern’s defence. The 26-year-old has started eight of 10 competitive matches this season, showing the composure and athleticism that made him one of Europe’s most sought-after defenders. 

Bayern view him as an integral part of their long-term project, but the financial side remains delicate. According to BILD report, the base salary agreement is in place, but Bayern are unwilling to cross the threshold on bonuses that could set an expensive precedent for future negotiations. “We’re trying to continue convincing him of the Bayern project,” said Eberl last week.

While Bayern remain confident, the delay has caught the attention of Europe’s elite. Real Madrid, PSG, and Liverpool are among the clubs monitoring Upamecano’s situation, sensing a potential opportunity if talks stall. With his contract set to expire in 2026, the French defender could be available on a cut-price deal in January, or even walk for free next summer.

Upamecano’s camp is reported to be aware of this leverage, but the player feels “completely at home” in Munich, suggesting that an agreement is still likely if Bayern make a reasonable compromise.

Kompany has revitalised Upamecano’s confidence after a mixed campaign last season. The Belgian coach’s emphasis on proactive defending and quick transitions suits the Frenchman’s natural strengths.

Negotiations are expected to continue over the coming weeks as Bayern seek to finalise the renewal before the end of the calendar year. A compromise on the signing bonus could unlock the deal, though Bayern are unlikely to match Davies’ amount outright. For now, Upamecano remains focused on the pitch, with Bayern targeting another domestic surge under Kompany and key Champions League fixtures looming. But unless both sides find common ground soon, Europe’s biggest clubs could make the next move in what’s becoming a tense transfer poker game in Munich.