The 31-year-old spent last season on loan at Tottenham, scoring the goal that kept them in the Premier League in the 1-0 win over Everton on the final day.
Palhinha has been widely expected to leave Bayern Munich on a permanent basis this summer and is now closing in on that exit.
According to Fabrizio Romano, Palhinha has now agreed personal terms over a move to Aston Villa, with discussions between the two clubs set to start.
Aston Villa transfer chief Damian Viadagany recently confirmed the club are looking to sign the Portugal international.
“We are in talks, but there is currently no agreement,” he told BILD.
"If something should happen, it is always on the basis of the great respect we feel for FC Bayern.
"We are friendly clubs; our relationship with Max Eberl (Bayern's director of sport), Christoph Freund (Bayern sporting director) and all other responsible persons is excellent.
"Therefore, I cannot and do not want to comment on any further details.”