The Italian giants hit the road in eighth, nine points adrift of fifth-placed Napoli, who occupy the last European spot.
It seems likely that Filippo Inzaghi's men will not be involved in continental football next season but Paletta - a January transfer window arrival from Parma - said it is still possible.
"We can't give up on it [Europe]," Paletta told Sky Sport Italia.
"There are still 10 games to be played. If we perform the way we did in the last few matches, in which we improved a great deal, then we'll win more of them than we'll lose.
"[Filippo] Inzaghi believes in it no less than we do. We're the ones who take to the pitch, and if we play together we can make it."
Menez has been absolutely crucial this term for a Milan side who have struggled for goals, with the 28-year-old weighing in with 15.
And Paletta feels that stopping Argentinean duo Dybala and Franco Vazquez will be crucial in Milan's bid for victory.
"I know Dybala and Vazquez well and they were decisive back in Argentina, too," he said.
"They're two strong players, they know each other well, and they co-operate on the pitch.
"On Saturday, we'll have to keep an eye open for them because they're the two most important players for Palermo."
Giuseppe Iachini's side will have welcomed the international break after a winless run of five - which featured three defeats.
