Fulham are prepared to allow João Palhinha to join Bayern Munich if they can sign a replacement with Tottenham midfielder Pierre-Emile Hojbjerg on their shortlist, sources have told ESPN.

The Cottagers have agreed a fee with Bayern in the region of 65 million ($70.5m) for Palhinha, who faces an anxious wait to see if Fulham can find a suitable signing before Friday night's transfer deadline.

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The transfer is made more complicated by the Bundesliga's window closing at 5 p.m. BST (12 p.m. ET), some six hours before it shuts in England. It means all parts of the transfer will need to be in place earlier for Bayern to complete the signing of Palhinha.

Sources have told ESPN that Fulham rejected an initial offer earlier this week but Bayern returned with an improved bid which was deemed acceptable, particularly as Palhinha is pushing for a move to the Bundesliga champions.

The 28-year-old only moved to Craven Cottage from Sporting Lisbon last summer in a deal worth approximately 20m and excelled in the Premier League, scoring three times in 35 appearances last term.

He also netted a late equaliser as Fulham secured a 2-2 draw at Arsenal last weekend.

Fulham are now set to make a formal offer for Hojbjerg, who has been deemed surplus to requirements by new Spurs head coach Ange Postecoglou. Fulham have also been tracking Monaco midfielder Youssouf Fofana as another possible alternative.

Meanwhile, Fulham are also closing in on the signing of Everton winger Alex Iwobi with the 27-year-old undergoing a medical on Friday morning ahead of a move worth around 20m.