Bayern Munich have agreed a deal in principle worth up to 56 million ($60.4m) with Fulham to sign midfielder João Palhinha, sources have told ESPN.

The transfer represents a club-record sale for Fulham, comprising 51m up front plus 5m in add-ons and the 28-year-old is expected to sign a four-year deal.

Palhinha is part of the Portugal squad preparing for Friday's Euro 2024 quarterfinal against France and is not expected to finalise the deal until his country's involvement in the tournament is over.

The move will end Bayern's year-long pursuit of Palhinha which saw a deal between the two clubs collapse last summer as Fulham struggled to find a replacement.

Palhinha had been given permission to fly to Germany to undergo a medical only for Fulham to call the deal off but it appears he will now finally get the move he craves.

Speaking last weekend, Palhinha said: "As far as my future is concerned, both clubs know where I want to be in a month. I am currently concentrating on my work with the national team and on making history for my country."

Palhinha joined Fulham from Sporting CP in 2022 and made 79 appearances for the Cottagers, winning their Player of the Year award in his opening season.