The Honduran joins Thomas Sorensen and Andy Wilkinson out the door at the Britannia.
Stoke City have announced their retained list for the upcoming season with three names truly standing out.
The club have announced that Thomas Sorensen, Wilson Palacios and Andy Wilkinson will all depart the club this summer.
Wilkinson is without doubt the longest serving member of the trio. He is a boyhood Stoke player, featuring in 194 games for the club in his 15 years at Stoke City.
Sorensen is also a Stoke veteran. The Dane joined the club from Aston Villa back in 2008 and spent the past seven years exclusively with the club.
He has in recent times not been a regular at the Britannia. The emergence of Asmir Begovic at the club has seen him play second fiddle at Stoke for some time. He has played just 12 times in the past three seasons.
Former Tottenham Hotspur midfielder Palacios on the other hand simply never made it at the club. The Honduran, who once cost Spurs £12 million, as reported by the BBC, joined the club from Tottenham in 2011. However he has failed to have an impact at Stoke. He has been the subject of a mystery fitness problem throughout his time at the club. He failed a medical at Qatar SC in July 2014, as reported by the Stoke Sentinel.
He has played just 53 games for Stoke in four seasons, playing no games this season.
Stoke also released nine other players from the under-21 side, including young Sam Coulson, who has been forced to retire with a knee injury aged 19.