"T.O. and I had a great working relationship. He had one of his most successful years over the past five or six years, a lot of production, and he was a great teammate in Cincinnati. The problem is that for him to get here there's not anybody that we could let go," Palmer said Wednesday in an interview with 95.7 The GAME (KGMZ-FM) in the Bay Area.
"We have a stable of young horses that can run and guys that can just move. Very young, very inexperienced, but tons of potential and it's tough to give up a young guy with a lot of potential for a guy that's got a lot of history in the league that's in his late 30s, so I can't see him coming here, but I had a good time playing with him and he's an explosive player himself."
Owens, a six-time Pro Bowl player, had 72 receptions for 983 yards and nine touchdowns last season with the Bengals when Palmer was his quarterback.
The 37-year-old free agent held a workout Tuesday to show NFL teams that he was fully recovered from ACL surgery in April. Not one team attended the workout, which was televised by ESPN and the NFL Network.
Agent Drew Rosenhaus said in an interview with ESPN Radio's "Mike and Mike in the Morning" on Wednesday that, based on his conversations with teams before the workout, he wasn't surprised by their absence. He said the workout was organized to "create interest. We were trying to create a buzz."
And he believes that Owens opened some eyes.
"I think that teams see that Terrell is healthy, that he is ready to play football," Rosenhaus said, although the agent hadn't received any calls from NFL teams as of Wednesday morning.
Owens has received offers from different leagues, including a six-figure offer from the Indoor Football League's Allen Wranglers. Also, the AFL's Chicago Rush on Wednesday issued a news release saying they had extended an offer to the receiver.
Rosenhaus scoffed at the offer, however.
"That is absurd," Rosenhaus told ESPN. "Terrell will of course only be playing in the NFL."
Owens said he wasn't deterred by the fact that no scouts were in attendance. His workout "speaks for itself," he said.
"I only need one team," Owens told the NFL Network on Tuesday. "I only need one chance."
Rosenhaus said that if Owens doesn't sign this year, he still will try to resume his career in 2012.
Information from ESPNDallas.com's Calvin Watkins was used in this report.