On March 22, 2021, he was announced as a new player for Brazilian Série A side Internacional[4] on a deal for a year on loan from Unión Española and a transfer promise for additional three years.[5]
Following Internacional, Palacios switched to Vasco da Gama in April 2022.[6] The next year, he was loaned out to Chilean club Colo-Colo.[7] In the second half of 2024, Colo-Colo purchased 50% of the rights of the player.[8][9] The next year, Palacios moved to Argentine club Boca Juniors.[10][11]