Sneijder has been linked with a return to Real Madrid in recent days.
"I, actually we, are happy that Wes is here with us," Palacio told the Gazzetta dello Sport.
"Everything is much easier on the pitch with him in the side. Sneijder is the head of this team - he makes everyone play well.
"If Sneijder plays in the manner that he knows how then, as a consequence, Inter as a whole play better."