Palin told ABC's Barbara Walters that she is seriously thinking about running for president in 2012.
"I'm looking at the lay of the land now, and trying to figure that out, if it's a good thing for the country, for the discourse, for my family, if it's a good thing," Palin said.
When asked if she thought she could beat Barack Obama, Palin said, "I believe so."
You can watch the entire interview with Palin on the Barbara Walters special, "Ten Most Fascinating People." It airs Dec. 9 at 10 p.m.
When asked about Palin by ABC's George Stephanopolis, Trump said, "I would take her on, I like her but I'd take her on."
Trump is not saying he'll run for the Republican presidential nomination, but it's clear that it is on his mind.
"I tell you, I am thinking about things. I'm looking at this country and what's happened in terms of respect. I have many people from China I do business with and they laugh at us," Trump said.
Trump is frequently in the public eye. Palin never seems to leave the limelight whether its applauding her daughter's dancing on "Dancing With the Stars" or campaigning for someone, somewhere. She has a new reality show and a new book coming out.
She seems to have a golden touch, except when it came to trying to oust incumbent Alaska Sen. Lisa Murkowski. Murkowski became a write-in candidate and appears to have beat Palin-backed Joe Miller.
In her reality TV series, Palin does everything Alaska from driving a dog sled to shooting trap with her daughter.
Palin has only modest encouragement that she could win a national race. A recent ABC News poll shows only 39 percent of the public view her favorably, and fewer, 27 percent see her as qualified for the presidency.
After the failed presidential race of McCain, Palin found herself in demand and resigned as governor of Alaska after two years. She chose to stay in the national political spotlight. Trump says he will decide by June whether he will run in the Republican primary.