Ipswich Town see Exequiel Palacios bid rejected as Leverkusen demand €40m

Ipswich Town have seen an opening bid for Exequiel Palacios rejected by Bayer Leverkusen, with the Bundesliga club reportedly demanding around €40 million for the Argentina international.

The Tractor Boys made the first move for the midfielder, but their proposal is understood to have fallen well short of Leverkusen's valuation, leaving a significant gap in negotiations.

Despite the setback, Palacios' long-term future remains uncertain after changing agents earlier this year.

According to the BILD, Ipswich submitted an initial offer worth €20m for the 27-year-old.

Leverkusen were reportedly surprised by both the size of the bid and the identity of the club making the approach, believing the proposal was nowhere near enough to begin serious negotiations.

The Bundesliga side are said to value Palacios at €40m, although previous reports have suggested a package closer to €35m could eventually be enough to reach an agreement.

Palacios only signed a contract extension with Leverkusen last year, keeping him at the club until 2028.

However, the World Cup winner has since changed representatives and is now represented by Kristian Bereit, a move that has fuelled speculation over a possible transfer.

Reports suggest the Argentine is interested in exploring a new challenge, although he has not formally informed Leverkusen that he wants to leave.

The midfielder only recently returned to pre-season after receiving extra time off following Argentina's involvement at the World Cup.

New Leverkusen head coach Carles Martínez reportedly considers Palacios a key part of his midfield and has no desire to lose him before the transfer window closes.

That stance explains why the German club are demanding such a significant fee before considering a sale.

There is also reported surprise within Leverkusen that Ipswich have emerged as Palacios' first serious suitor, with the midfielder previously linked to several of Europe's biggest clubs.

However, reports also suggest Ipswich would not have submitted an offer without receiving encouragement that the player could be interested in the move.

Ipswich must decide whether to return with an improved offer if they want to keep their interest alive. Bayer Leverkusen remain reluctant to sell, but Palacios' future could depend on whether another club joins the race or the Tractor Boys move closer to the Bundesliga side's valuation.