Bayern Munich have reportedly cooled their interest in Fulham midfielder Joao Palhinha.
The Portugal international was on the verge of signing for Bayern in the summer after travelling to Germany in the closing stages of the window.
As it proved, the proposed transfer ultimately fell through on deadline day, ensuring that Palhinha remained with Fulham for the first half of the 2023-24 campaign.
After failing to secure Palhinha's services in the summer, Bayern are still looking to bring in a new defensive midfielder.
While Palhinha continues to be linked with the Bavarians, Sky Sports News are reporting that Thomas Tuchel's side are unlikely to pursue a January move for the Fulham man.
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Although Bayern are still keen to sign a number six, the report suggests they are unwilling to go all in on Palhinha.
There is a belief that Fulham's financial demands have played a role in Bayern's decision to consider alternative targets.
Palhinha still faces an uncertain future at Craven Cottage amid speculation linking him with a move to several top Premier League clubs.
A recent report claimed Arsenal were among his admirers, although the Gunners could wait until the end of the season before pursuing a deal.
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Meanwhile, Liverpool and Manchester United have also joined the race to sign the Portuguese midfielder, who has a long-term contract with the Cottagers after signing an extension in September.
Palhinha's current Fulham deal runs until the summer of 2028 with an option for the club to extend by a further year.
The 28-year-old has been a regular fixture in the Fulham side this season, starting 11 of his 12 Premier League appearances.
Palhinha is expected to be involved when Fulham face fellow London side West Ham United at Craven Cottage on Sunday.
