The Sun says he's unhappy with the system employed by manager Liam Rosenior, believing it doesn't make the most of his qualities.
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Palmer is also missing Nicolas Jackson, currently on-loan with Bayern Munich, whom he developed a close connection with over the previous two seasons.
Manchester United, Real Madrid and Bayern Munich are all interested in the England midfielder, who could be prepared to force a move away this summer.
It's suggested if Chelsea miss Champions League or Europea League qualification this season it will lessen their chances of convincing Palmer to stay.
For their part, Chelsea are insisting Palmer isn't for sale, with the midfielder's deal running 2033.