Last month it emerged that Liverpool were actively pursuing a deal for 21-year-old Brazilian talent Allan, with the Reds joining Newcastle and Napoli in the race for the Palmeiras academy graduate.
The versatile left-footer already boasts more than 60 senior appearances for the Brazilian giants and has caught the eye of several European clubs thanks to his impressive performances in Serie A, the Paulista, Copa Libertadores and the Club World Cup.
Reports in Brazil suggested a fee of around £30m would be enough to prise him away from São Paulo, with the player capable of operating on the right wing, as a central attacking midfielder or even further forward.
Although still raw, the 175cm attacker had shown enough promise for Liverpool’s recruitment team — led by Michael Edwards and Richard Hughes — to believe he could develop into a key squad member at Anfield.
However, the trail appeared to have gone cold in recent weeks — until a significant update emerged from Palmeiras on Thursday.
Palmeiras to offer new contract to Allan
The Brasileiro club are now preparing to tie their young star down to a new long-term deal that would run until 2030.
According to Brazilian outlet Somos Fanaticos, the board’s clear intention is to fend off mounting European interest.
“Allan has a contract until 2029, it’s true, but the board’s intention behind the scenes is to ward off strong interest from European clubs,” the report stated.
“Therefore, the São Paulo club should officially announce the contract renewal until 2030 in the coming days.”
The extension is expected to come with improved terms, which would almost certainly push Allan’s valuation higher than the £30m mark previously quoted.
Allan: Situation summary
Allan Andrade Elias is a 21-year-old left-footed attacking midfielder/winger who has become a regular for Palmeiras under Abel Ferreira.
A proud “Cria da Academia”, he rose through the club’s U20 ranks, winning Paulista and Brasileiro U20 titles before breaking into the first team in 2023–24.
By early 2026 he had already racked up more than 60 senior appearances and double-digit goals, impressing with his pace, dribbling, 1v1 ability and versatility across the front line.
Palmeiras view him as one of their crown jewels and have moved swiftly to extend his contract from 2029 to 2030 after rejecting €30–35m approaches from Napoli and noting interest from Premier League sides.
Liverpool’s wing dilemma
The Reds are looking to strengthen their attacking options on both flanks, particularly with the long-term future of Mohamed Salah still uncertain.
While Allan was never viewed as an immediate, ready-made replacement for the Egyptian, he was seen as a high-potential signing who could develop into a difference-maker under Arne Slot.
With Palmeiras now set to secure their starlet on fresh terms until 2030, Liverpool’s hopes of landing the Brazilian appear to have been dealt a major blow — at least in the short term.
The club will now have to decide whether to return with a significantly higher offer or turn their attention to alternative targets as the January window approaches.
For now, one of Brazil’s brightest young talents looks set to remain at his boyhood club — for at least another four years
