The South American is a gifted 22-year-old midfielder who has been with current club Belgrano since he was a teenager.
An Argentine Under-20 international, Palermo announced his capture in September. He cost the Italian club 4.5m.
"We've already made our signing," stated President Maurizio Zamparini. "We decided to leave Vazquez in Argentina until January.
"We'll do nothing else in the window."