In January reports stated that Palmer was unsettled and homesick as he yearned to escape London and return to Manchester where many of his friends and family live.
The winger ruled out a return to Manchester City which sparked transfer rumours about a move to Manchester United who he is said to be a boyhood fan of.
A summer move could be on the cards for the England star ahead of the World Cup and Waddle spoke to Ozoon about how such a transfer might work.
“Palmer is definitely a talent, and I'm a big fan. I know he's had patches and hasn't been consistent since he went to Chelsea. Whether it's off-the-field issues or unhappiness in London, we don't know, only he can answer that.
“Chelsea have a massive squad, so he's rested, played, rested, and brought on. He probably wants to play every game, as players do. If he's a Manchester lad and supposedly a United fan, I'm sure he'd be very tempted.
“However, with Matheus Cunha and Bruno Fernandes, you can only play so many creative players. Will he get in the team? Most teams, you'd say yes, but Fernandes and Cunha are in good form right now. Yes, Cunha can play further forward, on the left, or on the right, but he likes to roam.
“So, where would you play Palmer? But as I said earlier, United will have to clear the decks. There are a few aged players they'll probably look to get rid of.
“So, yes, he'd be a great acquisition, and I would say when you find players of that ability and quality, you'll find a place in the team for them.”
With the imminent departure of Casemiro, Palmer will be on United’s transfer list heading into the summer. The 23 year old desires a move back up North and United could offer him that opportunity.