The 26-year-old product of the Torino academy "wanted to leave and we don't force anybody to stay", according to Fiorentina coach Cesare Prandelli.Balzaretti only moved to Florence from Juventus in the summer, making six Serie A appearances for the Viola. He now joins a Palermo side lying ninth in the standings.
In other transfer news, Cagliari have signed 33-year-old Luca Capecchi from Serie B side Ravenna, following the release of Marco Fortin by mutual consent.
Capecchi arrives in an undisclosed deal and will act as cover for first choice goalkeeper Marco Storari.
"I have never played in Serie A and I'm here to help Cagliari avoid relegation," said Capecchi.
The Sardinian outfit are bottom of the league with ten points from 19 matches.
Meanwhile, Catania have signed striker Inacio Pia on loan until the end of the season. Pia had been on loan to Serie B outfit Treviso from Napoli in the first half of the season, scoring three times in 16 appearances.
Source: UEFA
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