Dybala, 21, has scored 13 goals in 28 appearances for Palermo this season, helping the side reach mid-table in Serie A.
He is reportedly wanted by United manager Louis van Gaal, as well as Premier League rivals Arsenal and Italian giants Juventus.
But it is Serie A side Inter that appear closest to landing the Argentine after director Piero Ausilio today revealed a £29million bid is imminent.
Regarding the opening of discussions with Palermo chairman Maurizio Zamparini, Ausilio told Sky Sport Italia his club was willing to offer big money for Dybala.
“Our objective is to get back to the top from next season,” he said.
“Dybala is a strong and young player, so clearly we do like him.
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Both Inter and Juventus reportedly want to sign Man Utd and Arsenal target Paulo Dybala
“He has all the qualities to fit into the new Inter.
“We know Maurizio Zamparini is a difficult president to negotiate with in certain situations, but there’s no doubt we are interested in the player and he’d do well in our project.”
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