Owner Al Davis, who died in October, had effectively served as the team's general manager until his death.
Former Packers general manager Ron Wolf strongly endorsed McKenzie for the Raiders' position in a November interview.
"Reggie's a tremendous evaluator," Wolf told the Milwaukee Journal Sentinel. "He can tell you who can play and who can't play. That's what it's all about. Some can write reports but can't tell you who can play. Whatever that is, he has that. He has a feel."
McKenzie played linebacker for the Raiders from 1985-88.
On Monday, Raiders coach Hue Jackson said he wanted to be involved in the team's search for a general manager.
"... I would hope that the organization understands that I have a pretty good idea of where we need to go. Because if not, then I shouldn't be where I'm sitting," Jackson said, according to the Contra Costa Times.
Oakland gave up a 2012 first-round pick to get Palmer, leaving them with picks in just the fifth and sixth rounds of the 2012 draft until compensatory picks are doled out. The Raiders also are without a 2013 second-rounder because of the deal.
Information from The Associated Press was used in this report.