The young Dane has been linked with several of Europe’s biggest clubs after impressing in the Serie A.
“I’m a Palermo player and I think about doing well with this shirt,” said Kjaer.
“I enjoying it here, I find myself very well and if the team continues like this it will still be nice to stay here. It’s obviously nice that the great teams respect me.
“I’m happy to have played so much, I thank the coach who is giving me a lot of trust. I don’t speak Italian and I must thank the coach that he explained to me the tactics in English.”