Palmer has been flagged as someone who could move on from Manchester City this summer, with the Cityzens tipped to potentially consider selling him.
David Moyes’ West Ham have been credited with keen interest in the 21-year-old as the Scottish boss seeks further signings for the Hammers.
Now Borussia Dortmund are in the mix for Palmer and they have held direct talks with Manchester City, according to German broadcaster Sport1.
The Bundesliga club are hugely interested in signing the midfielder.
However, it is suggested that Manchester City’s financial demands for Palmer could prove to be too much for Dortmund to stomach.
The German side have sold Jude Bellingham to Real Madrid this summer, however may not be prepared to meet Manchester City’s asking price.
Palmer came through the youth ranks at Manchester City and has turned out for England at multiple youth levels.