Bayern Munich completed the signing of Portugal midfielder Joao Palhinha from Fulham for a reported fee of 49 million euros ($53 million) on Thursday, concluding a pursuit that nearly materialized last year.

Palhinha, 28, joined Fulham from Sporting Lisbon in 2022 for 22 million euros and has signed a four-year contract after spending two seasons with the London club.

In 2023, Bayern had been on the verge of securing Palhinha's transfer, with the defensive midfielder even pictured in the club's kit. However, the deal collapsed just before the transfer window closed when Fulham failed to find a suitable replacement.

In a statement, Palhinha said, "This is one of the happiest days of my life," adding, "This is a dream come true for me ... I want to enjoy success with Bayern and win titles."

Sporting director Max Eberl said the player was "highly sought after by Bayern even last summer – and rightly so. It was important that we never lost touch."

Palhinha, who has scored twice in 31 international appearances, participated in Portugal's Euro 2024 campaign, which ended with a quarterfinal loss to France.

His signing marks Bayern's third major acquisition of the summer as the club continues to rebuild after a season without a trophy for the first time since 2012.

Forward Michael Olise and center-back Hiroki Ito have already joined the club, along with manager Vincent Kompany, who was appointed coach at the end of last season.

Kompany's task is to return Bayern to the top of German football after their streak of 11 straight Bundesliga titles was broken last season.

Bayern were eliminated in the Champions League semifinals by eventual winners Real Madrid, while Bayer Leverkusen won the league and cup double under manager Xabi Alonso.

Kompany will face added pressure as the Champions League final is set to be held at Bayern's Allianz Arena next season.