Uruguayan Da Silva surprised his club by resigning on Wednesday, citing his displeasure with certain aspects of the Tomba management despite leading them to a second consecutive appearance in the Copa Libertadores.
Palermo's name was one of many suggested as Da Silva's successor as he looks for a return to football following his retirement in June.
Godoy president Mario Contreras said he did not see Da Silva's exit coming and added that now was not the right time to take a gamble on a coaching novice like Palermo.
"I want to be sincere, we were not expecting this from Da Silva. Twenty people have called to offer me a new coach, but I still cannot comment," Contreras told Radio Rivadavia.
"I don't think that Palermo will be the coach. He is not ready to direct so soon, I cannot see it."
It is the second time in two years that Godoy have lost a successful coach.
Omar Asad left under similar circumstances at the end of 2010 after leading the club to their first appearance in the continental competition.
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