That's the view of talkSPORT's Simon Jordan, who suggests there would have been some thought involved with such a lengthy deal.
Palmer has eight years remaining on his contract at Chelsea following his £42.5million move from Manchester City in 2023.
He has become one of the best talents in the Premier League with 60 goal contributions in 78 appearances across all competitions.
However, Carragher has raised concerns over potential frustration from Palmer with his teammates at Chelsea amid their poor form.
Carragher likened the situation to his fellow Liverpool legend Steven Gerrard on The Overlap Fan Debate when he said: "He was so much better than everybody else, it was like he was frustrated."
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He also criticised the length of Palmer's contract and how difficult it would be for him to leave, potentially for a Champions League club.
But talkSPORT's Jordan has dismissed Carragher observations, with the former Crystal Palace owner insisting players 'are not stupid'.
When addressing how Palmer could have a problem leaving Chelsea on White and Jordan, he said: "Don't sign the contract in the first place.
"I'm sure there's plenty of people around Cole Palmer that would've been able to give him the right advice, given the fact that he had already signed a relatively long-term contract with Chelsea, and all they've done is extend it by a few more years."
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"So is he being critical of Palmer's people for signing it?" asked Jim White, and Jordan said: "I think Jamie's making noise for noise sake.
"Ultimately, players want to sign long-term contracts that are predominantly based upon, perhaps preserving some value for the club.
"There may well be a whole raft of things [such as a clause], but I think it's just noise.
"Players are not stupid, and my word, certainly the people around them that see the opportunity as a result of their careers.
"Agents aren't going to be encouraging Cole Palmer to sign long-term contracts with Chelsea, because agents are going to make their money by moving him somewhere else.
"So the fact he's got an agent and he's signed a long-term contract might give you some indication that people have thought about this moderately carefully.
"Most people would've said, 'Why did you leave Man City?' He's landed at Chelsea. The question was, has he outgrown Chelsea? Well no, he can't have done because he's signed a long-term contract."
"They meant outgrown as in his capabilities, his levels," Danny Murphy said, but Jordan replied: "Well it depends where you think he can play, and which club would want to buy him."
"He could play anywhere, play [for] any team in the world," insisted Murphy in response.
Palmer signed a seven-year contract with the option of a further 12 months when he first joined Chelsea from City.
After an incredible debut season in which he 25 goals and assisted 15 others, he signed a two-year extension at Stamford Bridge until 2033.
The 22-year-old is therefore a long-term asset for Chelsea and any clubs interested in a transfer would likely have to pay huge money.
Palmer is the Blues' joint-top goalscorer with Christopher Nkunku on 14 goals this season but has struggled throughout 2025.
He hasn't scored since Chelsea's 2-2 draw against Bournemouth in January, with no goals or assists coming in his last ten appearances.
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The attacking midfielder missed the 1-0 defeat to Arsenal on Sunday with a muscle injury and his withdrawn from the England squad.
Chelsea are fourth in the Premier League and in the quarter-finals of the UEFA Conference League, where they will face Legia Warsaw.