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Clubs set to battle it out for Argentine midfielder who is deemed surplus to requirements as talks in Milan between agent and interested clubs are set to take place

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Roma are hoping to conclude a move for Real Madrid's Fernando Gago, but Palermo could yet swoop as negotiations continue for the player's services.

La Gazzetta dello Sport reports there have been a number of developments over a possible transfer after it was confirmed the midfielder was in talks with the capital-based club.

Palermo emerged as an interested party according to various reports late on Tuesday night, but their president, Maurizio Zamparini, described the stories as "nonsense", though did not completely exclude an approach for the Argentine.

Roma director Walter Sabatini is expected to meet Gago's agent Marcelo Lombilla in Milan on Wednesday to tie up a deal, but it is believed that Lombilla is also keen to hear from Palermo, despite Zamparini's denials.

Gago will be allowed to leave Real Madrid after struggling with injuries over the past two seasons, and is now surplus to requirements for coach Jose Mourinho.

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