After reports revealed that he was feeling homesick away from his home city, there has been constant speculation around Palmer who is said to want a move back to Manchester in the summer.
Whether that be Manchester United or Manchester City is unclear but the England international is reported a big Red Devils fan which may indicate where he will end up in the future.
Speaking to BetGoat, Meulensteen has opened up on the potential move which he says would be ideal for both the club and the 23 year old.
“Chelsea, for instance, might say there's no point in keeping an unhappy player if Palmer does want to leave, then it's a matter for the clubs to resolve.
“Obviously, Palmer is an outstanding and great player. I keep saying I can't really understand how United missed that in the first place, knowing he's such a United fan.
“He's been on the other side, at Manchester City, and then he goes to Chelsea. So, that has been, in my opinion, a bit of a missed opportunity altogether.
“He would be an outstanding player for Manchester United, although it would create some other issues because I think Amad is an outstanding player with very similar attributes.
“Same with Bryan Mbeumo who can play wide on the right, inside, or in the middle. Bruno Fernandes plays in that pocket area.”
For now, he remains tied to Stamford Bridge under a contract that runs until 2033, but as the summer approaches reports will only grow, especially as United are looking to rebuild their midfield.