The Argentine is set to be released by Inter Milan in January.
Sport Italia is just one of numerous outlets in the country reporting that Leicester City are monitoring the player’s situation at Inter Milan. His contract expires at the end of the season and the Nerazzurri have told him he will not be receiving a renewal.
Palacio has found himself in and out of the Inter Milan team in recent times and at 33-years-old the club have decided to let him move on. The reports claim that they are willing to terminate his contract six months early come January with a move to his boyhood club Boca Juniors heavily touted.
However Leicester will be hoping that the lure of Premier League football can force him to put off his homecoming for now.
Palacio has 27 caps for the Argentina national team and was part of the team that made it to the World Cup final in 2014, coming on as a sub for Gonzalo Higuain in the 78th minute of their defeat to Germany.