With Egidio Arevalo Rios set for a winter return to South America, the Rosanero are desperate to sign a new central midfielder in the January transfer window.
Italian newspaper La Stampa claims boss Gian Piero Gasperini has set his sights on Lazio midfielder Matuzalem.
The Brazilian is not held in high regard by new Biancocelesti boss Vladimir Petkovic and will be allowed to leave Olimpico in the next transfer window.
This basically means the Rosanero would get a high-quality midfielder at a bargain price, although the player’s €1.2 million yearly wage is proving to be a problem.
Therefore, Palermo will be able to complete the deal only if the player agrees to a major pay cut.
Despite playing an important role for Lazio over the last few years, Matuzalem hasn’t made a single competitive appearance this season.