The Rosanero currently sit in the Serie A relegation zone and desperately need to reinforce the squad in January in order to boost their survival chances.
AS understands that the Sicilian club are set to complete their first signing of the January transfer window.
According to the same source, Palermo are currently negotiating with Diego Buonanotte’s representatives, with the two parties very close to reaching an agreement.
Malaga, on the other and, are unlikely to stand in the way of the player who started just one La Liga fixture this term.
Buonanotte has had a difficult start to his career in Spain and never quite managed to establish himself as a first team regular at La Rosaleda.
Since joining the club from River Plate, the 24-year-old has made just 16 La Liga appearances, and failed to score a single goal.