The 27-year-old has been a key player for Bayer Leverkusen since joining from boyhood club River Plate back in 2019.
Last season, however, injuries got the better of him, and Palacios made just 18 Bundesliga appearances, starting 12 of them.
According to journalist Florian Plettenberg, newly promoted Ipswich are keen on bringing him to the Premier League, and had a £17 million bid rejected by Bayer Leverkusen.
He adds that Leverkusen’s perspective is that the offer is “far too low” and negotiations between the two clubs have been put on hold.
Palacios is keen on making the move happen, however, and has informed the club that he would like to join Ipswich.
