Cardinals general manager Steve Keim confirmed the team has been in discussion with Palmer's agent on a new deal.
"I won't get into specific points of the negotiations but we've had some dialogue with Dave Dunn," Keim said, according to The Arizona Republic. "(Palmer) has done a great job for us."
Palmer has been steady, if not spectacular, during his run with the Cardinals. He's completed 63.4 percent of his passes with 28 touchdowns and 22 interceptions in 18 starts. His passer rating is a respectable 86.0 and Arizona is 12-6 in his starts.