HITC Sport understands that impressive performances in the Blues' youth ranks have nudged the playmaker into first-team contention.
The 18-year-old has taken advantage of the fact that Chelsea have a huge sway of players already loaned out, but starring for the club's Under-21 side.
The England youth star bagged a brace in the midweek UEFA Champions League win over Maccabi Tel Aviv's youth side, which came just days after a sparkling hat-trick in a clash with Liverpool.
Now Palmer, who plays in a number 10 role, has caught the eye of Chelsea's first team coaches, and Jose Mourinho is considering allowing him into his squad on a regular basis.
Palmer was snapped up by Chelsea from Charlton Athletic in 2013 and he has made impressive progress, but this season has seen him make huge strides and he could find himself involved in the Premier League over the coming weeks.