, Spurs had a £10m offer rejected yesterday, but have not given up hope of landing the Honduras international in the January transfer window.
However, they will face stiff competition for the 24-year-old's signature from Manchester United, who are also reportedly willing to offer £14m.
Wigan are thought to be wanting at least £15m for Palacios, with chairman Dave Whelan slamming the initial £10m offer:
Whelan said: "It's not enough money. They can come back or forget it."
Manager Steve Bruce is planning talks with Palacios to confirm what the player's future plans are, and said: "We'll see what happens when the money men start talking.
"Bit it's difficult, it's not about me or the chairman, it's about the player.
"How can you deny them a life-changing opportunity? You can bet it will be a huge contract.
"He will be as good a midfielder as there is in a couple of years time."
Palacios has also attracted the attention of Real Madrid and Bayern Munich, but it is Spurs and United who are leading the way to land his signature.
Whoever Palacios joins, Wigan will make a huge profit on the player, who they signed for just £1m from Deportivio Olimpia back in January last year.