The 31-year-old remains under contract at Bayern Munich until June 2028, but German reports suggest he still does not feature in Vincent Kompany's plans, meaning both player and club are already exploring ways to part ways before the summer window shuts.
Aware of the situation, several clubs have registered interest, including two Serie A heavyweights in Juventus and AC Milan. According to Portuguese outlet A Bola, both clubs have already made contact with Bayern to gauge their willingness to sell the defensive midfielder.
Bayern are reportedly open to letting Palhinha leave for around €15m, a fee that would be within reach for the interested Italian sides, who would also have to contend with rival interest from Benfica and Sporting, both of whom have similarly registered their curiosity in the Lisbon-born midfielder.
Palhinha's future had initially looked set to be resolved through Sporting, given the strength of the connection to his homeland, though the Lisbon giants have faced their own complications in agreeing terms with Bayern.
Having helped Tottenham secure Premier League survival on the final day of last season, Palhinha now finds himself weighing up several possible destinations as he seeks regular first-team football heading into the new campaign, with Bayern keen to move the deal along before pre-season commitments intensify.
Tottenham's decision not to trigger their option to sign Palhinha permanently has effectively forced the situation, leaving Bayern to find a buyer for a player they signed from Fulham for a substantial fee only two years ago.
The Bundesliga club are understood to be prioritising a permanent sale over another loan, keen to recoup as much value as possible rather than see the midfielder's stock decline further on the sidelines in Munich. With four different suitors circling and Bayern eager for a swift resolution, Palhinha's next destination could become clearer within days rather than weeks.