Palmer started his career at West Bromwich Albion, joining as an apprentice in July 1983 before turning professional in December 1984. He made his league debut in September 1985, as a substitute against Newcastle United. He earned a move to Sheffield Wednesday in February 1989 for £750,000, where he made his name in the Premiership. This led to him being bought by Leeds United manager Howard Wilkinson for £2.6 million in June 1994.
In September 1997 he was signed by Southampton manager Dave Jones for a fee of £1.0 million. In the dressing room he was abrasive, awkward and argumentative but on the pitch he was determined, hard-working and persistent and his long legs made him difficult to play against. In January 1999 he was transferred to Nottingham Forest for a fee of £1.1 million and was replaced in Southampton’s midfield by Chris Marsden.
Palmer won 18 caps for the English national team, scoring once against San Marino. He was a member of the England squad that went to the 1992 European Championships in Sweden. He was also capped 5 times for the England B team.
He now works for Repton school Dubai and teaches football. and is a guest presenter on Showsports with Rob McCaffrey and Derek Whyte.