Tony Pulis plans to strengthen Crystal Palace's squad and backroom staff in a bid to help the Eagles stay up.
Celtic boss Neil Lennon has refused to name his transfer targets but confirmed he is looking to strengthen his team.
The 29-year-old defensive midfielder, whose move has the option to become permanent if he impresses at the Stadio Ennio Tardini, spent last season on loan at Inter Milan from Napoli, who he joined from Danubio in 2007.
Parma said in a statement on their website: "Parma announce that it has acquired midfielder Walter Gargano from Napoli on a temporary basis with the option to purchase outright.
"The Uruguayan will wear the number five shirt. He will be officially presented after linking up with his national team for the (World Cup qualifying) matches against Peru and Colombia on September 6 and 10."