Palmer said: "I have applied. Jimmy Quinn did a tremendous job there but this is sometimes how things work out in football.
"I know that all they want to do is stay in this division so I'll wait and see."
Palmer's last stint in management at Stockport ended in tears one year ago as he was replaced by Sammy McIlroy after relegation to Division 2.
The gangly midfielder has been out of the management game since then, but has turned out three times for Irish outfit Dublin City, managed by former Carlisle gaffer Roddy Collins.
Other names mentioned include Danny Wilson, Bobby Gould, Paul 'G8' Gascoigne and Turners Chris and Graham. The most desperate sounding applicant was former Wolves boss Colin Lee.
He said: "I wouldn't close the door on anything at the moment. I'm out of football, I've been out of work for a little while, and I'm looking to get back in, it's as simple as that."
Time will tell as to who takes the job, but a decision will have to be made soon to avoid the complete derailment of Town's season.