Reports from TuttomecartoWeb claim that the 23-year-old's agent has been in England to field interest from a number of Premier League clubs for his client, with Sunderland said to be particularly keen on a deal.
The Black Cats were heavily linked with a move for Hernandez last summer whilst under the stewardship of Paolo Di Canio, however former director of football Roberto Di Fanti was unable to secure a deal for the Uruguayan international.
Hernandez scored 14 goals in 28 appearances last season for Palermo, and could be ready to move on after helping guide the Sicilian club back into Serie A.
The player's agent Pablo Betancourt confirmed in March that Hernandez would seek a transfer away from Palermo this summer, saying; "Come June, Hernandez will leave the Rosanero, that's for sure"
It's thought that the 23-year-old turned down a move to the Stadium of Light this time last year, but with Gus Poyet now at the helm, Sunderland's chances may have increased.
The Sunderland manager has remained confident all summer regarding his techniques of persuasion, and it's highly possible that the 46-year-old may be able to lure his Uruguayan compatriot to the Premier League.
With the Black Cats still in ongoing talks regarding a potential deal for Fabio Borini, and with Connor Wickham yet to put pen to paper on a new contract, the Wearside club are likely to be looking at striking alternatives - and Hernandez could be a real possibility.