Inter Milan and AC Milan are locked in a battle to sign Argentinian defender Matias Silvestre, according to Palermo president Maurizio Zamparini.
Silvestre only joined Palermo from Catania in a reported €7 million deal last summer but has already requested to leave the Sicilian side amid reports the two Milan clubs are circling.
With Inter's Brazilian defender Lucio confirming he will leave the San Siro this summer, the Nerazzurri are eager to sign Silvestre, 27, as a replacement, but their neighbours and rivals are also tracking the former Boca Juniors player.
Palermo chief Zamparini told Corriere dello Sport: "The only one that will leave the club is Silvestre as he has requested to leave and we will try to help him.
"Inter have taken important steps towards acquiring the player while Milan have shown an interest."
Silvestre is under contract with Palermo until June 2015 and should fetch a hefty transfer fee.
Meanwhile, Palermo have confirmed the appointment of Giuseppe Sannino as their new coach. The 55-year-old Italian has signed a two-year deal.
Sannino recently terminated his contract with Siena having helped the Tuscan side retain their Serie A status.
A statement from Palermo read: "Palermo has a new coach. The club has handed the reins of the first team to Giuseppe Sannino.''
The veteran tactician replaces Bortolo Mutti, who left the club at the end of the campaign after just five months in charge.