The Argentina attacker hopes to sit down with the Nerazzurri and discuss a new deal in the next few days, while is hopeful of making Argentina's World Cup squad
The prolific attacker, 31, has developed into an important first-team member at the Nerazzurri since joining them from Genoa in the summer of 2012.
And Palacio has made it clear that he is very happy at Inter and wants to extend his stay at the club beyond 2015.
"Could I end my career at Inter? Yes, I'd like to, I really like it here," the Argentine striker told Sky Sport 24.
"I've still got 18 months to run on my current deal, we'll definitely sit down over the next few days and see if we can extend it a bit."
Palacio then went on to discuss his chances of making Argentina's World Cup squad and stressed that he does not see Juventus attacker Carlos Tevez as a direct rival.
"Do I fear Tevez as a rival for Argentina? No, not for the national team. He can go and so can I. But I know he's a great player. He's not a direct competitor for a place at the World Cup," he continued.
"The World Cup being held in Brazil is a dream for an Argentine, it's great playing there."
Argentina last won the World Cup in 1986 when they beat West Germany 3-2.