Palacios joined Wigan from Deportivo Olimpia in January 2008
Tottenham have agreed a deal with Wigan to sign Wilson Palacios for £12m.
The midfielder has passed a medical after agreeing terms and the transfer will be completed once the Honduras international receives a work permit.
Palacios, 24, has been at Wigan since January 2008 after signing from Deportivo Olimpia on a three-and-a-half year deal for £1m.
He has agreed a five-and-a-half year contract at White Hart Lane after deciding to leave the JJB Stadium.
It is understood that Palacios had reservations about moving to London from north-west England, where he was settled.
But Spurs boss Harry Redknapp said he was always confident the deal would go through and has now got his man.
"He will come in here and get after it and play aggressively. He will work and close and run. I feel that we need a bit of that around the place," he said.
"Palacios is a player I have liked since I first saw him, and he has the ability to go on to become a top, top player.
"I just like the way he plays. He is an all-round modern midfielder - he gets after it, he is box-to-box.
"I speak to people who have played against him, like Frank Lampard, and no-one has had an easy game against him. He is after you all the time."
Wigan boss Bruce said: "The club record transfer fee will be smashed if the deal goes through, but that was never mine or the club's motivation here.
"The club is not in the business of trying to make a profit on players. I want to build a winning team here and keep my best players together.
"We did everything we could as a club to keep Wilson. We sat down with him last week and offered him a very good new deal, and tried to convince him his interests were best served by staying here at Wigan Athletic.
"However, I'm a big believer in not standing in the way of players' careers, as long as the terms are right for our club and I wish him all the best.
"He has served the club well in short time with us and has been a credit to both himself and the club.
"It is no wonder we have some big clubs enquiring about our players because they have done very well this season. I always said that my biggest challenge this month was to keep the squad together, whilst trying to add to it at the same time.
"There are always tough decisions to make, but it's my job to make what I see as the right choices for the long-term good of Wigan Athletic."