English Football Association announced that Palmer, Watkins and Foden have been ruled out of the first games at the upcoming Nations League under Interim manager, Lee Carsley.
The three Lions squad reported to St. George’s Park following the assessment that both Palmer and Watkins returned to their clubs to continue rehabilitation for ongoing issues.
Manchester City's Phil Foden, will also not feature in their matches against the Finland and Republic of Ireland after not reporting with illness.
This serves as a significant blow for Carsley in his audition for the England role on a full-time basis, with Palmer the 50-year-old knows well from his time in charge of the U-21's.
Meanwhile, Palmer was part of Carsley's European Under-21 Championship winning side last year, netting once in their semi-final victory over Israel.
Palmer has reportedly proceeded from his sensational return last season into this season, notching one goal and four assists in three Premier League games so far this season.
However, the players included in the recent Nations League squad are; Anthony Gordon (14), Morgan Gibbs-White (15), Angel Gomes (16) and Noni Madueke (19) have made more appearances under Carsley than Palmer (13).
He has also created 11 chances this season, a total only bettered by Dwight McNeil (13) and Andreas Pereira (14) in the top flight so far.
England will be travelling to Dublin to face Ireland on Saturday (7 September, 5pm kick-off) before hosting Finland at Wembley Stadium on Tuesday (10 September, 7.45pm kick-off).
On Tuesday, September 3rd Kaide Gordon (Norwich City), Calum Scanlon (Millwall, on loan from Liverpool) and Jacob Wright (Manchester City) replace Omari Kellyman (Chelsea), Ben Chrisene (Norwich City) and Oliver Arblaster (Sheffield United) in the men's Elite League squad to play Türkiye and Romania.
Zach Nelson (Luton Town) and Louie Marsh (Sheffield United) are also called up to replace Alfie Devine (Tottenham Hotspur) and Darko Gyabi (Plymouth Argyle, on loan from Leeds United), who have withdrawn from the squad.
Lewis Orford (West Ham United) has withdrawn from the men's Under-19 squad and is replaced by Michael Golding (Leicester City).
The previous list arrangement on Monday, 2nd included Kellen Fisher (Norwich City) who was added to the England men's Elite League squad as Ryan Andrews (Watford) will be staying with his club until Saturday September 7 before joining up for the game with Romania in Stockport.
In the MU19s, Sam Proctor (Aston Villa) will replace Elyh Harrison (Chester FC, on loan from Manchester United), who has withdrawn.
Lucas Rawlings (Wolverhampton Wanderers) has been called into the England MU17s squad to replace Bailey Palmer (Middlesbrough), who has withdrawn as a result of injury.
