An agreement in the region of €3 million for the Argentine has been mooted.
"At this moment negotiations between the two sides are on-going after Palermo presented their offer to Malaga,” agent Ezequiel Manera told calciomercato.it.
“The Spanish club is open to selling Diego and he has already expressed his appreciation for the Italian club.
“He loves playing in Malaga, but has not found the right playing time here, so he would like to try a new adventure.
“So far the only Italian offer has come from Palermo, but I can confirm interest from other European and South American clubs too.