EAST RUTHERFORD, NJ - DECEMBER 11: Tyler Palko #4 of the Kansas City Chiefs throws against the New York Jets at MetLife Stadium on December 11, 2011 in East Rutherford, New Jersey. (Photo by Chris Trotman/Getty Images)
It appears they declined to do that. Palko was not tendered which means he's a free agent and available to sign anywhere.
I think it's a pretty good guess that Palko won't be coming back to the Chiefs. If they wanted to keep him, they would have offered him a tender. That they didn't tells us they're moving on.
Probably the best for both sides to move on.