Palacios signed a minor-league contract with the Royals on Monday.
The Tigers released Palacios on Thursday.
The Tigers reassigned Palacios to minor-league camp Monday, Jason Beck of MLB.com reports.
Palacios re-signed with the Tigers on a minor-league contract on Nov. 14, Evan Woodbery of MLive.com reports.
Palacios cleared waivers and was outrighted to Triple-A Toledo on Thursday.
Palacios was claimed off waivers by the Tigers on Tuesday, Cody Stavenhagen of The Athletic reports.
Palacios went 1-for-4 with a two-run home run in Wednesday's victory over the White Sox.
Palacios' contract was selected by the Twins on Saturday.
The Twins optioned Palacios to Triple-A St. Paul on Wednesday.
Palacios will start at shortstop and bat ninth in the second game of Tuesday's doubleheader with the Tigers.