The former Liverpool stopper will move to Sicily on a 12-month loan with the view to a permanent deal next June.
Palermo will pay £400,000 for the initial loan and Paletta can be signed outright for £3.5 million.
Tribal Football Staff are dedicated to the football tribes from all over the world. Our team is passionate about delivering football news to our hundreds of thousands of followers in all the corners of the globe. Football is life, It never stops, Neither do we.