The 24-year-old has featured sparingly for the Blues since his arrival from Roma in January of 2018, taking in only seven Premier League appearances as Marcos Alonso continues to be preferred on the left side of defence.
With that in mind, Palmieri's agent spoke recently of interest from other clubs, though at that time did not reveal the parties responsible.
“I think all the top European clubs would like to have a player like Emerson Palmieri in their squad,” Fernando Garcia said.
“There has been some interest, although nothing formal, so there is nothing to report now.
“I cannot talk about the clubs who approached us.”
Negotiations between the sides have made busier an already chaotic January at Stamford Bridge, with Chelsea looking to offload Alvaro Morata on loan and bring in a replacement striker, potentially in the shape of AC Milan's Gonzalo Higuain.
Atletico remain in the frame to land the former Real Madrid striker, however, and continue to hold talks over the transfer of a proven performer admired by both Diego Simeone and club CEO Gil Marin.
Maurizio Sarri also wants a replacement for Cesc Fabregas, who joined Monaco earlier in January, with the London side told that it will take £36m ($46m) to prise Leandro Paredes from Zenit.