The actress - Albert Square favourite Bianca Jackson - is currently on maternity leave after welcoming the arrival of her fourth child Bertie last month.
In a new interview with Hello magazine published today, Palmer revealed that her EastEnders contract recently expired and that she wishes to "enjoy every minute" with her newborn son for the time being.
The star's comments have since led to suggestions that she has decided to leave her role on the programme due to the controversial baby swap storyline currently airing on screen.
However, in a statement released this morning, Palmer insisted: "I have not quit EastEnders over the current storyline as reports suggest. My contract came to an end soon after I gave birth to Bertie and, as I have already said, I just want to spend every minute with him.
"I love EastEnders and have every intention of returning when the time is right for me and the show."
Bianca's departure storyline airs this week as she ends up in prison over an attack on Connor Stanley (Arinze Kene), the secret lover of her mum Carol.