Palmer's standout performance at Stamford Bridge last season propelled him into the spotlight, and he has continued to solidify his reputation as one of the top players in the Premier League this year.
The 22-year-old scored 25 goals in his first 12 months at Chelsea following a £40m move from Manchester City last summer.
That form saw Palmer win the Premier League Young Player of the Season award and be included in Gareth Southgate’s England squad for Euro 2024.
Palmer’s stunning form shows no sign of stopping, with the playmaker scoring six goals and making five assists in just seven league games this season.
Ex-England defender Carragher dismissed Chelsea’s chances of finishing in the top-four before the season started but has changed his stance due to ‘game-changing’ Palmer.
Carragher even believes Palmer would take Liverpool to another level if he was playing at Anfield and improve Arne Slot’s chances of winning the Premier League title in his first season at the club.
Liverpool sit top of the table ahead of Sunday’s clash against Chelsea, who have also impressed so far this season under new manager Enzo Maresca.
‘Maresca deserves credit, especially in getting the best from Cole Palmer who is a game-changing footballer,’ Carragher told the Daily Telegraph.
‘Mauricio Pochettino had begun to unlock the immense talent. Chelsea’s sporting directors Laurence Stewart and Paul Winstanley made a smart move appointing a coach who already knew Palmer from their Manchester City days.
‘Palmer is thriving and any team with him has a chance. Coming into this season I initially thought it too soon for Chelsea to finish in the top four because the team spirit and connection with the fans was not there.
‘Palmer is the biggest reason my view has changed. Now they can do it, although given the scale of their investment that is where they should be.
‘If Palmer was at Liverpool, Arne Slot would be more likely to finish his debut season as a title winner.
‘Palmer is that good, currently averaging more goal involvements per match than Stamford Bridge greats like Didier Drogba and Diego Costa.’
Looking ahead to Liverpool’s intriguing clash with Chelsea this weekend, Carragher added: ‘An Anfield trip is one of the toughest examinations, of course, especially with Slot trying to preserve his place at the top of the Premier League.
‘Whichever side wins will have their good start redefined as an excellent one.
‘A defeat will feel like a significant setback leading to questions about how much further they must go to reach their required level. That’s the nature of the beast when the top teams face off.’
Before the season began, Carragher suggested Liverpool’s arch-rivals Manchester United could sign Palmer if Chelsea struggled this season.
‘Something’s just come to me here,’ Carragher said on an episode of The Overlap with Sky Bet.
‘If Chelsea have another poor season, we were talking earlier about Manchester United having a real problem on that right wing.
‘He [Palmer] is a big Man United fan isn’t he? Would that not be something that United should visit maybe in 12 months if it doesn’t go well?
‘You know what, I think that could happen. Yeah, Cole Palmer to Man United.’
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