The Honduras international failed to make an appearance in the 2014-15 season and joins Andy Wilkinson and Thomas Sorensen in departing the Potters
Wilson Palacios is one of three first-team players to be released by Stoke City, the club has announced.
The former Tottenham midifielder failed to make an appearance for the Potters during the 2014-15 campaign and has not been offered a new deal.
He joins Andy Wilkinson and Thomas Sorensen in leaving the Britannia Stadium at the end of their current contracts as the Potters look to improve on a ninth-placed finish in the Premier League.
Manager Mark Hughes has already moved to improve his squad with the permanent signing of Philipp Wollscheid and addition of goalkeeper Jakob Haugaard.