Javier Pastore will decide whether to join Chelsea or PSG with both clubs set to agree deals with Palermo, according to reports in Italy.
The club's president Maurizio Zamparini has confirmed negotiations are at an advanced stage and he believes a deal is imminent.
The Premier League and Ligue 1 side are both understood to be determined to land the 22-year-old Argentina playmaker, who enjoyed a successful campaign in Serie A.
Zamparini is refusing to say which club is in pole position to land Pastore, stating only that talks are close to being concluded.
"I'll only talk after the sale. We're close to finalising it. It's only a matter of time," Zamparini told Sky Italia.
The club's vice president Guglielmo Micciche has confirmed that Chelsea and PSG are in the running for the Argentinian, although he does not know where the star will end up.
A fee in the region of €40million (£35.1m) is expected to satisfy Palermo's demands and Micciche says the club are seeking an "important figure" to part with his services.
"Chelsea or PSG? Both London and Paris are two beautiful cities, and both represent a great opportunity for Pastore," he told Calcio Mercato.
"At the moment there are negotiations in progress and it is a situation which is involving the president Zamparini, along with the boy's attorneys.
"We're talking about a major player and therefore important figures. We're looking for the best solution for both parties.
"I'm sure, however, that Pastore will join the team that shows the most desire to secure his signature."
If PSG land Pastore they could make it a double deal with the Italian club, as they also want their promising Italian keeper Salvatore Sirigu.