Abstract: We consider static spherically symmetric configurations in a Palatini extension of General Relativity including R-2 and Ricci-squared terms, which is known to replace the central singularity by a wormhole in the electrovacuum case. We modify the matter sector of the theory by adding to the usual Maxwell term a nonlinear electromagnetic extension which is known to implement a confinement mechanism in flat space. One feature of the resulting theory is that the nonlinear electric field leads to a dynamically generated cosmological constant. We show that with this matter source the solutions of the model are asymptotically de Sitter and possess a wormhole topology. We discuss in some detail the conditions that guarantee the absence of singularities and of traversable wormholes.