Bayern will initially pay Fulham £43.2m for the Portugal midfielder, with an additional £4.2m in add-ons. The move will represent a club-record sale for Fulham.
Sky Germany reports Palhinha will sign a four-year deal at the Allianz Arena, and will hold off on a medical until after Portugal’s Euro 2024 campaign has finished.
The 2016 winners face France in the quarter-finals in Hamburg on Friday.
Palhinha signed for Fulham from Sporting Lisbon in 2022, and was close to joining Bayern last summer until the deal fell through on Transfer Deadline Day because Fulham could not find a replacement in time.
The Portugal midfielder had flown to Germany for a medical after Fulham gave him permission to make the trip.
Bayern kept their interest alive and saw another offer rejected earlier this summer, with Man Utd and Barcelona also both interested. Fulham also turned down a £45m bid from West Ham last July.
The 2024 summer transfer window in the Premier League and Scottish Premiership is officially open.
The window will close on August 30 at 11pm UK time in England and at 11.30pm in Scotland.
The Premier League and Scottish Premiership brought forward Deadline Day to link up with the other major leagues in Europe. The closing dates were set following discussions with the leagues in England, Germany, Italy, Spain and France.
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