Palmeiras rejected an opening €30m (£26m) package from Villa earlier this week, but sources in Brazil now suggest the Premier League club see that knockback as the start of negotiations rather than the end of them. Any renewed move, however, may have to wait until the January window opens.
Allan, a 22-year-old academy graduate who has been at Palmeiras since 2019, has established himself as one of the most sought-after young talents in Brazilian football, with Liverpool and Newcastle United also credited with an interest in the winger.
Speaking on ESPN Brazil, journalists Bruno Andrade and André Hernan both painted the same picture: Palmeiras' public rejection of the opening bid has done little to cool Villa's interest.
"The information I've received is that Aston Villa haven't given up," Andrade said. "They're preparing, or at least studying, a new offer in the hope of convincing Palmeiras. Allan remains on Aston Villa's radar, they're still interested, and they're preparing a second approach."
Hernan said he has been told the same by people close to the player on a daily basis, though he was far more sceptical that a revised bid would change Palmeiras' calculations.
"I've heard the same thing from people who work with Allan. Aston Villa could increase the offer and make another approach to Palmeiras," he said. "Everyone tells me they're 'studying' an offer. But they're going to become experts from studying it so much, because Palmeiras simply aren't going to sell."
Hernan also rejected suggestions that Palmeiras have settled on a specific valuation that would tempt them into a sale.
"Does Palmeiras have a magic number? No. Palmeiras are operating with one idea only: not selling him," he said.
Under contract at Palmeiras until 2029, Allan is viewed by the Sao Paulo club as central to their push for silverware this season, leaving Villa facing a lengthy battle if they are to land the winger.
Villa's interest comes amid a reshuffle of Emery's attacking options this summer, having already sanctioned the sale of Morgan Rogers to Chelsea in a club-record deal. Reinforcing the wide areas remains a priority before the current window closes, even if a deal for Allan now looks more likely to be a January proposition.