Palhinha agreed personal terms with Bayern and underwent a medical in Germany on summer transfer deadline day, only to see Fulham pull the plug at the last minute after failing to sign a replacement.
Bayern are reportedly preparing an offer for the midfielder in January, but Palhinha has signed a new five-year deal which can be extended for a further 12 months until 2029.
Palhinha said: “I feel happy. A lot of history has happened for me in the last few weeks, a lot has been heard about my future, but I’m just focused on my job at Fulham.
“I still have 100% commitment to this club, I have all the respect for the club, for the supporters. From day one, they were very supportive, and my family and I felt it from the moment I arrived here.
“I will give everything I have. It was always like that, on the field, off the field, in our locker room with my teammates. I have a lot of respect for everyone here at Fulham and I’m ready to start again, to give my best and I want to achieve good things.
Reed was a transfer target for Wolves over the summer, but once again a move failed to materialize, with Fulham reluctant to let the player leave. Standard sport confirmed last week that contract negotiations were underway and the player has now signed a new four-year deal. Here again, the club can extend for another year.
Reed said: “I can’t wait to cross the finish line. This is something we’ve been working on for a short time, but I’m really excited to put pen to paper.
“I made it clear from day one that, for me, my future was here, and if the club was up to it, then let’s do something.
“Luckily the Club’s ambition matched mine, so I’m really happy and looking forward to the future.”