Chievo boss Stefano Pioli is said to be the favourite to get the Palermo job next season, according to Il Corriere dello Sport.
Palermo President Maurizio Zamparini recently sacked Serse Cosmi and brought back his predecessor Delio Rossi after just four games in charge.
Rossi isn't seen as a long-term solution partly because of his inability to get Palermo to defend well, although he is expected to remain in place until the end of the season.
Palermo have apparently interviewed former Genoa boss Gian Piero Gasperini for the position, but the latest reports claim the meeting didn't go well and he is considering other projects.
Il Corriere understands Pioli is a top contender despite his recent problems at Chievo primarily because of his ability to organise teams well on a defensive level.
Maribor Coach Darko Milanic is also on the shortlist considering the Slovenian contingent at Palermo, as is Gianluca Atzori, the former Catania boss and Palermo player.
Think you know your Italian football? Share your knowledge, tips and comments to win cash prizes in OLBG's World Cup tipster competition - £10,000 to be won!