Palestra, 21, spent last season on loan at Cagliari, making 37 Serie A appearances — 34 from the start — and scoring one goal with four assists in an outstanding debut campaign at the top level.
His performances for the Sardinian club triggered widespread interest, with seven Premier League clubs — Manchester City, Liverpool, Tottenham Hotspur, Newcastle United, Arsenal, Chelsea and Manchester United — all reported to have shown interest alongside Inter Milan, Juventus, AC Milan, Roma, Napoli and Barcelona.
Despite the breadth of competition, Palestra himself is understood to prefer remaining in Serie A and has specifically indicated his desire to move to Inter. The personal preference has given the Milan club a decisive advantage that Corriere dello Sport reports is now being translated into direct discussions over personal terms.
Atalanta rejected Inter's first bid and are holding out for a fee of approximately €45m, in line with their stated valuation. Palestra is contracted at Atalanta until June 2029.
The Denzel Dumfries factor is significant. The Dutchman is signing for Real Madrid and Inter need a right-back capable of stepping into a starting role immediately. Palestra — already established at Serie A level — represents the most efficient solution available.