"I think he'll announce he's coming back real soon," Arians said during an appearance on ESPN's NFL Insiders on Friday. "I think it's just a matter of letting all the bumps and bruises heal, have a great time with the kids snow skiing ... and he'll be back."
The 37-year-old Palmer hasn't committed to being the Cardinals' quarterback in 2017, but he said in December that was the plan, and he shared that sentiment with Arians.
Palmer, who threw for 4,233 yards and 26 touchdowns in 2016, is scheduled to earn $17.5 million next season, but he is coming off a year in which he missed one game due to a concussion and also dealt with lingering hamstring soreness.
It was the fourth time in five seasons that Palmer eclipsed 4,000 yards passing.
"He played so well at the end of the season. He's not ready to give it up, I don't believe," Arians said of Palmer. "I think it's just a matter of the body healing, like every year with those older guys. And we now have a way of keeping him fresh every week. And he knows that we can keep him fresh and ready for Sundays."
If Palmer does return, he would be joined by a familiar face, as the Cardinals found out Wednesday that veteran receiver Larry Fitzgerald would be returning to the team.