Palermo announced Miccoli would appear at a press conference tomorrow to reveal his future plans, but Maurizio Zamparini has not waited to claim Miccoli is staying.
"Fabrizio will remain with us," he said on reterete24.it, adding that tomorrow's press conference will "erase any doubt over the permanence of our captain".
He continued: "Yesterday I met Miccoli, and I reiterated the esteem and confidence the club holds him in. He was a bit worried after he suffered a knee injury. But I told him to stay because we consider him a key part of the project."
Miccoli has been strongly linked with a move to the Barclays Premier League, with Palermo sporting director Walter Sabatini admitting Birmingham had made enquiries about the 30-year-old.
Sabatini yesterday told TGS: "Is Miccoli considering Birmingham's offer? It is normal that a player has some doubts when an offer is received.
"Palermo do not want to sell the player. We will evaluate everything soon.
"Miccoli is essential for us, and it is important that we do not lose him.
"But it is equally important that everyone is happy."
Miccoli, who has 10 caps for Italy, has been at Palermo for the last three years, scoring 40 goals in 86 appearances, and helping them to fifth place in Serie A last season.
In a separate deal, Palermo today signed well-travelled forward Massimo Maccarone from Siena for an undisclosed fee.
The 30-year-old has signed a three-year deal with the option of a fourth as he joins the 10th club of his career.
The twice-capped Italy striker failed to build on the potential he showed as a youngster at AC Milan and Empoli, and struggled during a spell in England with Middlesbrough, but restored his reputation during three years at Siena as he scored 44 goals in 95 appearances.
However, his goals were not enough to save Siena from the drop at the end of last season, allowing Palermo to swoop in as they reinforce for their Europa League campaign next season.