The 38-year-old hung up his boots back in June 2011 and, after enjoying an extended holiday with his family, is keen to stay involved with the game in the dugout
The 38-year-old is a legend at La Bombonera and the Buenos Aires club's top goalscorer of all time; he bid an emotional goodbye last summer after a match against Gimnasia de La Plata in June 2011.
The South American has admitted that he wants to stay in the game and will become a trainer with assistance from two of his former Boca team-mates.
"My idea is to take a little while, the last long vacation to enjoy a little more time with my family. And when I return, I have a view to start coaching," Palermo told Marca.
"The coaching staff is already selected. My assistant will be Guillermo Barros Schelotto, but I have to wait six months until the retirement of Flaco [Rolando Schiavi] to add him to my work group. From there, I will start coaching."
Palermo spent three years playing in Spain with Real Betis, Alaves and, most notably, Villarreal, and would not rule out training a side in the European nation.
"Hopefully I did the right things in those three years for one team to have me as a coach and work there. It would be great to work in a league as important as the Spanish," he continued.
Palermo's testimonial is due to take place at La Bombonera on Saturday and he has revealed that there will be a number of high-profile players competing.
"Diego Maradona will be there. I asked him to come and he will come to share with me. It generates excitement," the forward enthused.
"[Carlos] Tevez will be there also. Others who will play are Oscar Cordoba, [Jorge] Bermudez, Chicho Serna, [Rodolfo] Arruabarrena, Guillermo Barros Schelotto, and many more.
“I wanted [Zinedine] Zidane, [Luis] Figo, Ronaldo to come ... I would invite [Thierry] Henry but he went to Arsenal. But there are about 50 players or more I can ask.
"I called Lionel Messi and I know he would have liked to have played, but he will not be able to come. Rodrigo Palacio, Daniel Diaz, Kun [Aguero]... I would have liked them to come, but it was difficult for them due to their commitments to their clubs."