The 23-year-old has impressed during his first two years at the club both as a punt and kick returner and with his defensive duties, as he has become one of the top defensive backs in the NFL.
Palmer told reporters: "We've got a pretty big package in for a guy who's a defensive football player. It's something you have to prepare for, to think about, to worry about.
"Whether he touches the ball every time he's on the field or doesn't touch it all, he's a threat, and he's something the defense has to account and prepare for."
Peterson was drafted sixth overall by Arizona in the 2011 draft out of the Lousiana State University.