The shot-stopper has supposedly attracted the interest of Barcelona and the former San Siro goalkeeper feels the Nerazzurri should sell if the price is right
The 28-year-old has recently been linked with a move to Barcelona as the Catalans prepare for life after Victor Valdes, whose contract runs out next summer, and Pagliuca feels it would be in Inter's best interests to let go of the shot-stopper if a good offer comes in.
"I would sell him if someone offered €30m. That's a lot of money," Pagliuca told Sky Sport.
"He is one of the best goalkeepers of the younger generation alongside Manuel Neuer at Bayern Munich. And then there's more experienced players like Iker Casillas and Gianluigi Buffon.
"Handanovic is a goalkeeper who has been doing very well in the past few years."
The Slovenian joined Inter from Udinese in the summer of 2012 and immediately became a key player at the Nerazzurri. His contract with the Giuseppe Meazza side is due to expire in 2016.