The Blades are still yet to appoint a new permanent boss following Chris Wilder’s departure from the club earlier this year.
Paul Heckingbottom has taken charge on an interim basis, and is understood to be in the running to land the role on a full-time contract, but Clement’s name has also been thrown into the mix in recent days.
Reports from Belgium suggest that the 47-year-old is a genuine contender for the vacant hot seat at Bramall Lane, but Palmer is of the opinion that the Blades would be better off appointing a manager with greater experience of the English game.
Speaking to Transfer Tavern, he said: “I think he’s a big risk. I think you’ve got to go tried and trusted, I really do.
"You know, it [the Championship] a tough, tough league to get out of.
“I think Sheffield United have the players to get out of that league next season.
"They just need to get the right person at the helm to do that.”
Clement has been in charge of Club Brugge since the summer of 2019, averaging 2.03 points per game over the course of his 93 matches in the dugout.
The former defender has been crowned Belgian champion three times since making the move into management, and led his current side out in the Champions League group stage this season.
Despite having never managed in England, Clement did spend a season with Coventry City in 1998/99 during his own playing days.