The Argentine was set to join Juve this season before their demotion to Serie B over the Calciopoli scandal. Juve scout Massimo Brambati has been tracking Palacio for over a year.

However, Milan may trump Juve for the striker with transfers chief Ariedo Braida currently in South America on a scouting mission. Palacio could be brought to the San Siro in January to boost coach Carlo Ancelotti's struggling attack.