Transfer expert Fabrizio Romano claims that the 27-year-old has ‘options to leave’ current club Bayer Leverkusen, with the Blues and Bundesliga outfit RB Leipzig ‘both keen’ on a potential deal.
He adds that nothing has been agreed or is close to happening, but that Palacios could be on the move this summer.
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The 41-cap Argentina international, who was part of the squad who lifted the 2022 World Cup and reached the final this year, came through the ranks at boyhood club River Plate before joining Bayer Leverkusen in 2020.
The 5ft 10ins deep-lying midfielder featured 18 times in the German top flight last season, starting 12 league games.
Ipswich are pushing to strengthen in the centre of the park before the start of the Premier League season, maintaining an interest in Fulham’s Sasa Lukic and Burnley’s Florentino Luis.
We also understand that Town are confident that they can get a deal done to re-sign Julio Enciso, who is currently at Ligue 1 side Strasbourg.