Palmeiras have reached an agreement to transfer winger Allan to Manchester City for 40 million euros ($46.6 million), a source at the Brazilian club told AFP on Monday.
The 22-year-old Allan is a product of the club's prolific youth academy, which has recently exported players such as Estevao (Chelsea) and Endrick (Real Madrid) to Europe.
According to the source, Palmeiras and City have reached a "verbal agreement" on the sale, which has yet to be formalized.
Allan made his debut for the Sao Paulo-based club last year.
This season, he has scored four goals and contributed three assists in 21 matches in the 2026 Brasileirao – the country's top football league, which Palmeiras are currently leading after 24 rounds.
Allan has also scored one goal and chipped in with two assists in eight appearances in the Copa Libertadores, with Palmeiras into the quarterfinals.