Hernandez was in fine form last season to help the Sicily club climb back into Serie A at the first time of asking from Serie B.
The Uruguyan was part of his national squad for the World Cup but played little part, being fourth choice striker behind Luis Suarez, Diego Forlan and Edinson Cavani.
Liverpool are keen to add a number of attacking players to their squad should Suarez depart for Barcelona and Arsenal are desperate to offer Olivier Giroud some help in attack at a decent price.
Palermo president Maurizio Zamparini has confirmed that no club has made a move for the 23-year-old striker and that he expects his man to stick by the club next season.
“We have not received any offers for Abel Hernandez,” Zamparini said to Italian radio station Kiss Kiss.
“I believe he will remain with us.”