Renault has already secured the services of Nico Hulkenberg for 2017 but has yet to announce anything regarding its second seat.

And while Palmer says proving to Renault that he should be kept on is still his priority, he reckons he has a good chance of remaining an F1 race driver even if his current team picks someone else to partner Hulkenberg.

Speaking in Mexico about his 2017 plans, Palmer said: "I have other options as well, I'm not only focused on Renault.

"Renault's the main target and I think probably a decision is not that far away, but you never know. I think I'd be foolish not to be looking elsewhere as well.

"I think I have a reasonable chance to be here [at Renault]... I'm pretty confident of being on the grid next year - hopefully it's going to be here and I can show what I can do.

"If not, then I'm pretty confident of being on the grid elsewhere."

Palmer insisted also that it was still far from "clear" who Renault would pick for the seat.

"I'm sure they've not made their minds up," he said. "I think the reason the decision is being delayed is because it's not clear at the moment who's going to take the seat.

"I think every chance that I get to put my case forward, basically, is an opportunity to show them I should be there."

On whether he would at this point accept a firm offer from another team without waiting for Renault's decision, Palmer added: "It's difficult to stay - it depends what the firm offer is, who it's with... obviously Renault is still the main focus so I'll speak to them and see what they're thinking.

"I think it's not going to be long before everything starts falling into place and we'll know a lot more."

Two main contenders for Renault seat

While many a driver has been linked to the second Renault seat in the recent weeks, Palmer believes it should come down to him and Magnussen.

"I think it's mainly between me and Kevin," said the Briton. "I don't know if there could be someone else that's in the mix, I would say it's probably likely to be me or Kevin.

Asked whether Esteban Ocon, long reported as a primary Renault target, was in the mix, Palmer said: "I could be wrong, I don't know exactly what's in the minds of the management, but I'd expect it to be me or Kevin. But it could be Esteban as well, or it could be someone else."

Responding to Palmer's comments, teammate Magnussen said: "I don't think it's only between me and him. I still think the seat is open and, as far as I'm aware, there is no decision yet.

"I'm pushing hard to do my best and show that it should be me. I want to stay here, that's my target and what I want to do. I think it's the right place for me."

Additional reporting by Jonathan Noble