The Sicilians have accepted a reported €5 million offer for the Italy international, who had been hoping to seal a move to Roma, according to Rosanero president Maurizio Zamparini
Rosanero supremo Maurizio Zamparini claimed over the weekend that the Italy international wanted to join Roma but that the onus was on the Giallorossi to match the Partenopei's €5 million bid for the player.
There has been no movement on that front in the interim and Palermo are therefore now keen to do business with Napoli.
"There is an agreement in principle," he told Radio Kiss Kiss Napoli. "Knowing the presidents, it's an understanding that we would not have any trouble defining.
"So, it is the decisive day [in the transfer saga]. The player is still on holiday and must arrive at the pre-season base in the coming hours.
"But there is no doubt that we are in the final phase of this situation.
"The player just has to convey what he wants to do. The offer of Naples is serious and important, but it all depends on the will of the player to move to the Partenopei."
Balzaretti, who joined Palermo from Fiorentina in 2008, has also previously been linked with Juventus and AC Milan, as well as Paris Saint-Germain.