Highly regarded Serb starlet Milan Milanovic had a medical with Palermo on Thursday in anticipation of a move from Lokomotiv Moscow.
The 19-year-old's contract has by now expired in Russia and he is expected to join Palermo on a permanent basis this week, although he will only be available to play from July 1.
Serie A clubs are only allowed to register one non-EU player per season in accordance with new rules imposed after Italy's early exit from the World Cup last summer.
Milanovic is considered one of the hottest defensive prospects in Europe and had attracted attention from the likes of Manchester United, Inter and Milan.
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