The Honduran has struggled to hold down a regular first-team place at White Hart Lane this season and he heads a list of players Harry Redknapp is willing to sell in order to raise funds.
Napoli coach Walter Mazzarri is known to be an admirer of the former Wigan midfielder and he is looking to bolster his squad ahead of their Champions League campaign.
Clear out: Wilson Palacios is one of a number of players Harry Redknapp is looking to sell
The club's sporting director, Riccardo Bigon, is thought to have met Palacios' representatives to discuss a possible deal.
The 26-year-old cost Spurs ?12million in January 2009 but he only made 16 league starts in a disappointing season, with both Tom Huddlestone and Sandro moving ahead of him in the pecking order to partner Luka Modric.
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Source: Daily Mail
Source: Daily Mail