Palladino still has nine months left on his contract at Atalanta, but the two parties are working through the final details of a mutual termination, with the deal expected to include a settlement payment. Neither side is thought to foresee major obstacles to reaching an agreement.
Palladino's exit from Bergamo last season was not entirely smooth, with the coach turning down a contract extension to 2029 shortly after Atalanta's 6-1 aggregate defeat to Bayern Munich in the Champions League.
He now returns to Serie A with Bologna, where a two-year contract until 2028 is regarded as likely. The move would allow Bologna to remove an additional salary from their books following Ivan Juric's departure earlier in the year, when he left to sign with Monza over the summer.
Palladino saw off competition from two other coaches under consideration for the Bologna job, Stefano Pioli and Thiago Motta, the latter still without a club since leaving Juventus at the end of last season.
The 41-year-old has amassed 135 appearances as a Serie A head coach across spells at Monza, Fiorentina and, most recently, Atalanta, where he guided the club to a seventh-placed finish. His time in Bergamo also included a run to the last 16 of the Champions League, though it ended with Atalanta shipping ten goals to Bayern Munich across the two-legged tie, including a 6-1 defeat in the first leg.
Bologna's decision to move on from Tedesco comes after just four league matches, with the club having collected only a single point and losing three times, including a heavy defeat at Napoli that appears to have accelerated the process. The turnover continues a difficult run for Bologna's coaching position, and represents the second managerial change of the season in Serie A following Fiorentina's decision to sack Fabio Grosso and recall Paolo Vanoli earlier this month.
Tedesco had arrived in the summer to replace Vincenzo Italiano, who left to take charge of Bologna's Europa League run the previous season before departing for Besiktas. His brief tenure yielded just one point from four matches, including a draw with Sassuolo and defeats to Lazio, Atalanta and Napoli, a run that left the club well below expectations after their strong finish to the previous campaign.