The England star has agreed a one-year extension on his previous deal with improved terms, committing him to the club until 2034 in what is huge news for the Blues.
Palmer, who was the highest-ranked English footballer in last year’s Ballon d’Or, has been consistently linked with a move away from the club over the past few years, with Manchester United said to be his main target.
He has now quashed such rumours as he remains loyal to the West London side, explaining how the introduction of Xabi Alonso this season only helped him become more like himself on and off the pitch.
"Since he's come in, I have enjoyed it, and the responsibility he's giving me and stuff. It's only right to continue and try and give back.
"I feel a lot different (this season). I just feel more like myself. I can move how I used to move. I can shoot. I can essentially do everything I am good at again...
"I feel like we can win the major trophies here consistently, and hopefully that's what we're going to do this year, and next year...
"I am confident, and everyone else is confident, that Chelsea will go back to where they belong."
Palmer has lifted the Conference League and Club World Cup with Chelsea since joining from Manchester City in 2023, and despite Chelsea's poor start, he is clearly keen for more success.