Corinthians ready to cut ties with Diego Palacios | OneFootball

Corinthians are in advanced talks to send left-back Diego Palacios on loan to Austin FC in Major League Soccer, according to Globo. The 25-year-old Ecuador international is not part of Dorival Júnior’s plans, with the club already relying on Angileri, Hugo, and Matheus Bidu for the left-back role.

Negotiations are centred on a no-fee loan arrangement, in which Austin FC would cover Palacios’s salary, while Corinthians remain responsible for agreed image rights and signing bonuses. The move is designed to ease the wage bill and open a squad spot, with Corinthians targeting reinforcements in the current transfer window.

Palacios joined Corinthians from Los Angeles FC late last year and has found opportunities extremely limited. He featured only once in his debut season before a serious knee injury sidelined him. Since recovering, he has been used three times in 2024 but has failed to convince the coaching staff.

Despite being contracted through the end of 2027, Palacios has been unable to establish himself at Timão. His limited involvement comes at a time when the club is managing its squad composition and payroll carefully.

A return to the United States would see Palacios move back to a league he knows well. Prior to his time in São Paulo, the defender spent several seasons with LAFC, making a strong impression in MLS. Corinthians’ decision to move him on reflects both the depth at left-back and the club’s desire to redirect resources.

Should the loan deal be finalized, Palacios would join Austin FC for the remainder of the campaign, with the exact length of the loan and any options to buy yet to be confirmed.

(Source: Globo)

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