Roberto De Zerbi has made no secret of his desire to keep Joao Palhinha in North London, but a fresh report suggests Tottenham have now made their final call.They say you should never fall in love with a loan player, but Tottenham Hotspur supporters are finding that easier said than done when it comes to Joao Palhinha.After arriving on loan from Bayern Munich last summer, the Portuguese midfielder did not enjoy the smoothest start to life in North London. However, as the season progressed, Palhinha established himself as one of the most important figures in the squad and ultimately became a fan favourite.In a campaign filled with disappointment, injuries and uncertainty, Palhinha repeatedly stepped up when Tottenham needed him most. Several of his goals and match-winning displays proved crucial in helping Spurs avoid relegation on the final day of the season.It therefore came as little surprise when Roberto De Zerbi publicly admitted that he wanted the Portugal international to remain at the club beyond the end of his loan spell.However, with Sporting Lisbon eager to bring their former midfielder back to Portugal, a major update has now emerged regarding Palhinha’s future.Credit: @thefrederikkejensen / InstagramTottenham step away from Joao Palhinha dealAccording to Portuguese outlet A BOLA, Tottenham have now decided against activating their €30 million (£25.4m) option to buy Joao Palhinha permanently from Bayern Munich.The report claims Spurs are now effectively “out of the picture”, opening the door for Sporting Lisbon to begin negotiations with the Bundesliga champions.Interestingly, A BOLA had previously suggested Tottenham’s Premier League survival was viewed as bad news by Sporting, as remaining in the top flight significantly improved Spurs’ chances of retaining Palhinha. Despite that setback, the Portuguese club reportedly remain confident of completing a deal.The report adds that Sporting are yet to formally approach Bayern Munich, but talks are now expected to accelerate. Bayern themselves are believed to be open to selling the midfielder, with head coach Vincent Kompany having made it clear that Palhinha does not feature prominently in his long-term plans despite being contracted until 2028.Sporting: Tottenham a sair da corrida por Palhinha e leão chega-se à frenteLeia aqui: https://t.co/Hb2I6Hdp0O#futebol #nacional #sporting #joaopalhinha #tottenham #ligaportugalbetclic #bayern #premierleague #bundesliga— A BOLA (@abolapt) May 31, 2026Joao Palhinha appears to have chosen his next destinationFor much of the season, it appeared Palhinha was leaning towards staying at Tottenham after admitting himself that he would like to make his move permanent. A BOLA have backed that by stating Palhinha still holds “enormous affection” for Tottenham and has not forgotten De Zerbi’s desire to keep him at the club.However, the same report suggests the 29-year-old is now ‘fixated’ on a return to Sporting Lisbon.In fact, Palhinha is reportedly willing to accept a reduction on his current annual salary of around €9 million in order to make the move happen. Personal and family reasons are believed to be driving that decision, with those factors now outweighing any possibility of extending his stay in North London.READ MORE: Tottenham join race for £25m midfielder De Zerbi managed just last seasonThe post Tottenham make Joao Palhinha transfer decision that will break De Zerbi’s heart appeared first on Spurs Web.