Palhinha, 30, spend 2026-26 on loan at Tottenham from Bayern Munich, scoring the goal that kept them in the Premier League on the final day.
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Spurs have since broken their club transfer record twice, first with an £85 million deal for Fernandes, and then a £100m move for Tonali.
So, according to journalist Tom Barclay, Tottenham have decided against bringing Palhinha back to the club, despite his desire to do so.
The midfielder is still expected to leave Bayern Munich, however, and has been heavily linked with a move back to boyhood club Sporting.
