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 about to happen.
The Premier League and Ligue 1 side are both understood to be firm to land the 22-year-old Argentina playmaker.
The club's vice president Guglielmo Micciche has confirmed that Chelsea and PSG are in the running, although he does not know where the star will join.
A fee in the region of £35.1million 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."
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