The proposed deal would shatter the British transfer record, recently set by Liverpool's acquisition of Florian Wirtz from Bayer Leverkusen earlier this summer.

The Citizens parted ways with Palmer in 2023, selling the then-21-year-old to Chelsea for 40 million pounds after manager Pep Guardiola struggled to integrate him into a star-studded attacking lineup.

Reflecting on the decision, Guardiola said in April 2024, "He was asking to leave for two seasons. I said stay because Riyad (Mahrez) has gone, but he said, 'No, I want to leave.' What could I say?"

Since joining Chelsea, Palmer has transformed into one of the Premier League's brightest talents, earning 12 England caps and amassing an impressive 37 goals and 19 assists in 70 Premier League matches over two seasons. His standout performances culminated in a dazzling display during Chelsea's 3-0 victory over Paris Saint-Germain in the FIFA Club World Cup final in July 2025, where he scored twice and provided an assist.

Spanish outlet Fichajes reports that Chelsea are determined to retain their star, who remains under contract until 2033, with the Blues "betting heavily" on his long-term future at Stamford Bridge.

However, Manchester City's audacious 170 million euro bid reflects their belief that Palmer could be a game-changer for their squad. The report suggests Guardiola is "determined to bring him back at all costs," viewing the 23-year-old as a key piece in their evolving project.

Chelsea now face a critical decision: hold firm and keep their talisman or consider the staggering financial windfall. Interest in Palmer isn't limited to Manchester City, with Paris Saint-Germain reportedly preparing a world-record 250 million euro offer earlier this month, though Chelsea showed no inclination to negotiate.

Palmer's impact at Chelsea extends beyond statistics. His teammates have lauded his character and ability. Striker Liam Delap, who joined Chelsea from Ipswich in 2025, told FIFA after the Club World Cup triumph, "It was incredible. He's a world-class player and today he showed that."

Goalkeeper Robert Sanchez added, "Cole Palmer is the best in the world. If he's not the best now, he's going to be in the next two to three years. What he does is magic."

Right-back Malo Gusto echoed the sentiment, saying, "He's a top player, like many others in this team. He did a lot for us tonight."

Manchester City's pursuit underscores their regret over letting Palmer slip through their grasp, but Chelsea's resolve and Palmer's long-term contract suggest prising him away will require more than a record-breaking sum.

For now, the Blues remain focused on building around their star, who continues to shine on the global stage.

Report: Man City launch record-breaking bid for Chelsea star Cole Palmer