Manchester City transfer target Michael Olise now has a “new minimum release fee” after signing a new contract with Crystal Palace, according to the Secret Scout.

In a surprise development on Thursday afternoon, Eagles chairman Stever Parish confirmed that the Frenchman had signed a new four-year deal but the Secret Scout claims a buyout clause is still present:

🚨Understand Olise has had a new minimum release fee included in his contract pic.twitter.com/LOHj4bhfsB

— TheSecretScout (@TheSecretScout_) August 17, 2023

Olise was set to make the switch to Chelsea, after the Blues triggered the original £35m release fee, but the Blues opted to withdraw their interest following tapping up allegations.

It is believed that Parish was not happy with how Chelsea have conducted negotiations and he threatened to reveal evidence at a tribunal that would have implicated the London club.

Reluctant to go through a complicated legal battle, it appears the decision was made to put a stop to the transfer entirely.

What does this mean for City?

It does effectively leave the door open for the Premier League champions to make a move for Olise in the future, although a bid this summer now seems unlikely.

With Olise not expected to be back in action until late September at the earliest due to a hamstring injury, it may be a deal that the Citizens revisit during the January transfer window.

It could have implications for Cole Palmer

The winger put in another excellent display in the UEFA Super Cup on Wednesday night, scoring the all-important equaliser against Sevilla. After the match, both Palmer and manager Pep Guardiola made it known that he could be sold before the transfer deadline.

However, if Olise is no longer an option, and City don’t end up tabling a bid for Rennes’ Jeremy Doku, it could aid Palmer’s chances of staying at the Etihad and getting the game time that he wants. It is a situation to keep an eye on.