"The family, Exequiel and I want him to go in June and Real Madrid don't have a problem with him staying at River until then.”
And Palacios has now had his say on the situation, claiming he is proud to be linked with a club of Real Madrid’s stature.
“It is a pride that Real Madrid looks at me,” he said.
“It's hard to get away from all the things that are said in social networks.
Exequiel Palacios has been linked with Real Madrid (Image: GETTY)
“I try to be calm and to enjoy every day. My friends want me to stay and live here.
"When one reflects, begins to realise what can happen, Real Madrid is a very big club.
"My head was always here at River, I wanted to take advantage and have the chance to play and be in the starting lineup.
“Luckily, it was given to me and I'm taking full advantage of it.
Palacios has impressed in Argentina, alerting a host of clubs in Europe (Image: GETTY)
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Real Madrid have already signed Brahim Diaz in the January transfer window (Image: GETTY)
"My family is going to respect my decision, and in a very short time, a lot of good things happened to me.
“But, well, you have to be calm and enjoy this."
Real Madridhavealready moved to sign Brahim Diaz from Manchester City in the January transfer window as they look to turn their season around.
Santiago Solari’s sidearefifth in La Liga and 10 points adrift of leaders and better rivals Barcelona.
The clubarealso reported to be lining up a move for Tottenham star Christian Eriksen at the end of the season.