La Liga side Rayo Vallecano have reportedly leapfrogged Olympiacos in the race to sign Inter Milan outcast Tomas Palacios.

According to Greek publication Athlosnews via FCInterNews, the Spaniards are now the front-runners to land the Argentine.

Despite signing the 22-year-old only last summer, Inter have already put the out-of-favor defender up for sale.

Indeed, the Nerazzurri paid Independiente Rivadavia around €6.5 million to land Tomas Palacios.

Although he failed to impress, Inter could still profit from his departure.

Rayo Vallecano Surpass Olympiacos in Race to Sign Inter Milan Flop Tomas Palacios

MONZA, ITALY – MARCH 02: Nikola Vlasic of Torino is challenged by Tomas Palacios of Monza during the Serie A match between Monza and Torino at U-Power Stadium on March 02, 2025 in Monza, Italy. (Photo by Francesco Scaccianoce/Getty Images)

Rayo Vallecano are in the lead, but they have yet to agree on terms with Inter.

According to the report, it may take up to €8 million to lure the young center-back away from San Siro.

However, they would ideally sign Palacios on loan with an option to buy.

Though that’s not an ideal option for Inter, they have limited options.

Meanwhile, they are on the market for defensive reinforcements, with Kim Min-jae emerging as a concrete target for late summer.