Aston Villa's proposal consisted of a €25m guaranteed fee plus €5m in add-ons, but Palmeiras turned it down as they consider Allan a key player for the remainder of the season and believe his value will only continue to rise.
Villa are looking to reinforce their attack after selling Morgan Rogers to Chelsea for a club-record £117m fee last week, and see Allan, who can play as a right winger, attacking midfielder or forward, as an ideal fit alongside fellow summer arrivals Johan Manzambi and Alejandro Garnacho; the club is also said to be pursuing Chelsea's Nicolas Jackson as it continues reshaping its attacking options.
A Palmeiras academy product who has been at the club since 2019, Allan was promoted to the first team last season and has scored six goals with four assists in 34 appearances across all competitions in 2026, having made 88 appearances in total for the club and started twice in last year's Club World Cup, including the quarter-final defeat to Chelsea.
Palmeiras sporting director Anderson Barros informed Allan's representatives that the club has no intention of negotiating a sale, with president Leila Pereira and head coach Abel Ferreira understood to be united in wanting to keep him for at least another season; the Brazilian club previously rejected an even higher bid worth around €35m from Napoli earlier in the window.
Reports in Brazil suggest Palmeiras would only seriously consider offers in the region of €45m, with the club, who are also fielding interest from Newcastle United and Liverpool for the player, sitting top of the Brazilian league and through to the knockout stages of both the Copa do Brasil and Copa Libertadores, giving them little incentive to sell before their season is over.
Villa's recruitment team have been particularly active in South America this summer as they look to build a squad capable of competing on multiple fronts following their return to the Champions League.