Palazzolo, 64, was arrested by Interpol in Bangkok, Thailand, earlier this month. He is facing extradition after Italian authorities struggled for years to have him deported from South Africa.
His lawyers argued that his chances of "successfully resisting deportation" from Thailand would be greatly enhanced if the South African embassy could confirm he was a South African citizen, that he was travelling on a South African passport and that he was "entitled, in terms of the South African constitution, to return to South Africa".
They asked Judge Ashley Binns-Ward to issue a declaratory order compelling Minister of International Relations and Cooperation Maite Nkoana-Mashabane to inform Thai authorities that Palazzolo was a South African citizen.
It emerged that Thai immigration police intended to deport him to Italy this month.
Palazzolo was convicted and sentenced in absentia in Italy for "aggravated Mafia-type association".
Serious doubts had in the past been cast on the validity of his South African citizenship.
After his arrest in Thailand, it surfaced that he was the subject of a money-laundering investigation by the Hawks.
The Italian government has made six requests to South African authorities for his extradition, the last in 2007. He was also placed on Interpol's Red Notice list for internationally wanted persons.
Former justice minister Enver Surty started extradition proceedings in 2009, but Palazzolo fought back. In 2010, the Cape High Court ruled in his favour.
In his affidavit, Palazzolo reveals he has a home in Cape Town but spends time in Namibia, where he has business interests.
This week, Police Minister Nathi Mthethwa and Italian Minister of Interior Annamaria Cancellieri signed a police cooperation agreement that could impede Palazzolo's bid for freedom.
The two governments intend to crack down on crime syndicates.
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