The 25-year-old midfielder has been at the heart of a Leverkusen team who are unbeaten in the Bundesliga this season and have won eight of their opening nine league games.
The Argentinian has already popped up on the radar of a few Premier League clubs, such as Manchester United.
The Red Devils considered signing him in the summer before making the decision to try and sign him at the end of the current season.
But they could be forced to move early as according to Argentine outlet TNT Sports, Aston Villa and Newcastle also have their eyes on him.
The two Premier League clubs are keen on him and are considering a move in the winter transfer window.
Palacios has also popped up on Manchester City’s radar, with the Cityzens also weighing up a move this winter.
He recently signed a new five-year deal and Leverkusen are likely to demand a big fee if clubs come calling for him in January.
