The 38-year-old defender thinks that his compatriot would be a quality addition to the Nerazzurri squad as the striker appears poised to move to San Siro
Rossoblu president Enrico Preziosi confirmed on Tuesday that Palacio will sign for Inter after the two clubs agreed a deal for the 30-year-old striker.
And Zanetti has no doubt that Palacio will be a quality asset to the side, having played alongside the Genoa man in the Argentina national team.
"He is someone I know well, we are talking about a terrific player," Zanetti told Inter's official website.
"He is not a player who has just burst onto the scene."
Zanetti also spoke of his delight at the team's reception in Indonesia as the Nerazzurri make a post-season tour of thecountry.
"This was an unbelievable reception, we are very pleased, thank you so much," he said.
"The next few days in Indonesia are going to make for a wonderful experience, it is the first time I have been to this country and it is a real honour.
"Thank you for the warmth you have shown. It has been a tough season but we hope to make our fans happy, at least over the next few days.
"And then we will focus on the next season with fresh energy."
Inter finished in sixth place in Serie A, 26 points behind champions Juventus.