Rodrigo Palacio has signed a contract extension that ties him to Inter until the completion of the 16/17 season. Earlier reports indicated that he would have to take reduced wages in order to sign a new contract and while there was no mention of this in the official statement, it is reasonable to assume that this actually occurred.
Since his arrival from Genoa in 2012, the former Argentinian international has scored 54 goals in 132 appearances. This season his role has been reduced, though it is clear that Mancini still sees the value of Palacio. His work rate is incredible and he always is willing to give everything he has when he is on the pitch.
After signing the extension Palacio talked about how excited he was to stick around and how happy he was that the team is playing at a level even he didn't expect. Inter haven't won any trophies during Palacio's time at the club and I'm sure he is eager to fix that. Given the way things are going right now that could easily change in a season or two and now Palacio will have a chance to help make sure that happens.