The Manchester United boss has major concerns about the
long-term fitness of Owen Hargreaves and needs a dynamic holding
midfielder.
The Tottenham star has impressed during his 18 months at White
Hart Lane and played a key role in helping Harry Redknapp's side
qualify for the Champions League.
But the Honduras international has never disguised his ambition
to play for one of the established top-four clubs after making his
name at Wigan and Spurs following a short loan spell at Birmingham
three years ago.
Palacios, 26, would cost around £16million and Spurs would hold
out for their asking price as he has four years left on his current
contract.
It is thought that the deal is loaded with clauses that allow
him to speak to other clubs if they offer more than a fixed sum -
believed to be in the region of £15m.
Fergie also has doubts over the suitability of Michael Carrick
to the defensive midfield position if United are to continue
challenging for the Premier League title and Champions League in
seasons to come.
The United boss was interested in signing Palacios before he
made his £12m switch to Tottenham in January 2009. He also
attracted scouts from Real Madrid and Bayern Munich during his time
at Wigan.
Another player who remains in Fergie's sights is Karim
Benzema.
The Real Madrid striker has failed to impress new manager Jose
Mourinho and endured a disappointing debut season at the Bernabeu
last term.
But Fergie believes Benzema, who cost Real over £30m from Lyon,
would provide a creative spark for his side which is still
over-reliant on Wayne Rooney.
Real are prepared to let the France international leave for
around half what they paid for him last summer and would prefer him
to join a club outside Spain.
