The 27-year-old was in excellent form for the Serie A side last season after a return of eight goals and seven assists in 36 top-flight appearances in Italy.
Spurs manager Mauricio Pochettino is thought to be keen to add more depth to his Tottenham squad up front after finishing in third place in the Premier League last term.
However, the north London side are expected to face competition from Premier League rivals Manchester United for the Palermo forward ahead of the summer transfer window.
According to the Daily Star, Tottenham are preparing a £10m offer plus add ons to test the Serie A outfit’s resolve, although Palermo are thought to want around the £20m mark.
United appointed Jose Mourinho as their new manager on Friday afternoon after months of speculation linking the Portuguese coach with the Old Trafford position.
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