Bayern Munich are ‘walking away’ from a January move for Fulham midfielder Joao Palhinha after he signed a new deal at Craven Cottage, according to reports from Germany.

German sports daily Bild claims that the Bundesliga giants are eyeing alternative options after the Portuguese international’s decision to extend his contract with the Whites pushed up the potential asking price. Previous press reports had suggested that Bayern were worried about a spurious knee problem and Bild suggests that senior figures at the German club would baulk at paying more than the £64.3m price that had been agreed in the summer.

The report concludes by emphasising that Bayern are ‘refraining’ from furthering their previous interest with an increased offer, which would be a huge boost to Fulham’s prospects.