Bayern Munich have agreed a deal to sign Fulham midfielder Joao Palhinha for a fee worth up to £47.4m.

Bayern will initially pay Fulham £43.2m for the Portugal midfielder, with an additional £4.2m in add-ons. The move will represent a club-record sale for Fulham.

Sky Germany reports Palhinha will sign a four-year deal at the Allianz Arena, and will hold off on a medical until after Portugal’s Euro 2024 campaign has finished.

The 2016 winners face France in the quarter-finals in Hamburg on Friday.

Palhinha signed for Fulham from Sporting Lisbon in 2022, and was close to joining Bayern last summer until the deal fell through on Transfer Deadline Day because Fulham could not find a replacement in time.

The Portugal midfielder had flown to Germany for a medical after Fulham gave him permission to make the trip.

Bayern kept their interest alive and saw another offer rejected earlier this summer, with Man Utd and Barcelona also both interested. Fulham also turned down a £45m bid from West Ham last July.