The 22-year-old has been part of the Blues' pre-season, however the club changed its stance on the midfielder and will let him depart for the right price.
Swansea City have been heavily linked with the midfielder, and according to Chelsea Loan Army, a fee has been agreed for the midfielder, which we believe to be with Swansea.
FutbolSwansea report that it is just a loan deal however Chelsea were hoping to sell Palmer permanently this summer for £3.5 million.
Swans boss Steve Cooper is a huge admirer of Palmer and has had a keen eye on the youngster all summer.
An announcement is expected shortly with the window coming to a close in the new few weeks.