Palermo President Maurizio Zamparini will meet with the agent of Josip Ilicic on Sunday in a bid to extend his contract.
The 22-year-old, linked with Inter earlier this week, has had an impressive first season in Serie A following his move from Maribor last August.
It is understood that Zamparini is ready to offer the attacking midfielder a deal until 2016, with a salary rise from €300,000 a season to €1m a campaign.
Ilicic only cost Palermo €2.2m a year ago.
Despite interest from other clubs, it seems as if the player will commit his future to the Rosanero.
"Josip is really happy in Palermo and he's always said that another season here would do him well," his agent Amir Ruznic stated earlier this week.
"He also has an excellent relationship with the President.
"I honestly don't know anything about the Inter rumours. I don't know if the two clubs have spoken, but I certainly haven't been contacted by Inter," he continued.
"I will be meeting with Zamparini soon as we are talking about a contract extension for the player. If he has anything to tell me then he will."