Chelsea are the highest spenders in Premier League and Manager Mauricio Pochettino has said the Blues may look to bring in one more offensive player during this transfer window.
Palmer was part of the England youth side which won the European Under-21 Championship earlier this summer.
Not surprisingly, Palmer has made a great impact since he started playing for the senior team.
The 21-year-old has started the season well at City and scored in both the Uefa Super Cup win over Sevilla and the Community Shield loss to Arsenal.
Chelsea manager Mauricio Pochettino said he “could not talk about players that don’t belong to us” when asked about Palmer on Wednesday.
“I don’t know anything at the moment,” Pochettino said after his side’s 2-1 Carabao Cup win over AFC Wimbledon.
“The club didn’t tell me. I don’t want to talk about a player that has still not signed.”
