Palermo president Maurizio Zamparini is planning talks with coach Delio Rossi.
Zamparini is expected to hold talks with Rossi at some stage this week about the future.
"My idea is to keep him but I have to see what kind of side he wants and the economical aspects," he said.
"I've asked one of the directors to offer him a one year deal so we can sit around a table and talk about it."
"I like both of them. I consider Ranieri to be a great, but Palermo would be a compromise for him and not a great objective.
"Torrente has less experience, but has more enthusiasm. He'll be a more risky choice, but Palermo would represent a great opportunity for him."