Since then, he has had some excellent performances in the Spurs midfield.
In September 2011, Palacios had his car confiscated by Staffordshire Police after he failed to provide them with his driving licence.
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He stayed for less than a month and despite impressing during his stay, he did not join the club after Red Star refused to pay the transfer fee demanded by Olimpia, and a salary of, reportedly, US$1.5 million for a three-year contract.
On 24 August 2007, Birmingham City announced that after a recommendation from Arsenal manager Arsène Wenger they were offering Palacios a trial with a view to a six-month loan, which was agreed on 31 August 2007.
The following season, Palacios was restricted to 21 appearances in the Premier League, though he did play a key role in Tottenham's run to the quarter-final of the Champions League.
By March 2012, Palacios still had not managed to become a regular in the side, playing mostly in substitution roles, though he did start the majority of the team's European fixtures.You have exceeded the time limit and your reservation has been released.The purpose of this time limit is to ensure that registration is available to as many people as possible. They became the first trio of brothers to represent a single nation in the World Cup.In January 2009, Palacios' mother made a televised appeal for the kidnappers to open communication with the family, expressing her need to find out if Edwin was still alive, her fears that Palacios' big-money transfer to Tottenham would only strengthen the kidnappers' demands, and a request for help from the British authorities.In August 2011, Palacios joined Stoke City for an undisclosed fee believed to be around £6 million.