The Argentine defender has already passed his medical in Milan and now an agreement has been struck between Argentine clubs Rivadavia and Talleres, which both held a percentage of his registration.
Palacios will join Inter for €6.5m plus bonuses, which could take the figure up to €10m.
The sum is to be divided equally between Rivadavia and Talleres.
With everything settled, Palacios' deal is due to be rubberstamped today.
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