McAtee spent last season on loan with Sheffield United and he turned some heads with his performances.
Sheffield United want to take McAtee back to Bramall Lane this season and the player is also on the wish lists of Wolves, Leicester City and Ajax.
Palmer featured a total of 25 times for Manchester City last season and the midfielder began the ongoing campaign in an impressive manner, scoring two goals in three appearances.
Premier League outfits in the form of West Ham, Brighton and Burnley are keen on securing the 21-year-old’s signature on a permanent basis this season.
However, it has been claimed that Manchester City will only let one of the two youngsters leave the Etihad Stadium this summer.
Manchester City are expected to make their final decision on Palmer and McAtee’s future on Wednesday.
And now suitors of both youngsters will eagerly wait to see what decision the Sky Blues take regarding McAtee and Palmer’s future.