Palacios led Pirates to a second consecutive Treble this year, after replacing Julio Leal in March with 12 League matches to play.
"Coaching Orlando Pirates last season, under the circumstances the team was in, was with no shadow of doubt to me the highest point of my professional coaching career," Palacios tells Bucs' official website.
"It was hard work and determination that brought myself and the club to where we finished.
"Coming in in the middle of the season and entrusted with the task of defending the League at all costs, was a task that one had to undertake, knowing that I could not afford to make it go wrong!"
The Peruvian says on Pirates website that in his 25 years in South Africa the most important thing he has learnt as a coach revolves around culture.
"Since my arrival in the country and after I decided to get into coaching, the first thing I endeavoured to do, was to understand how local players think. It might seem a simple thing, but players in every part of the world think differently.
"South African players are highly devoted to their culture and tradition, which is something they do not compromise on, and as a coach, I had to understand that and find ways of getting through to them without making them feel uncomfortable.
"Over the years that was my mission and I think I have mastered that quite well."
Palacios, who recently signed a contract to coach Pirates next season, says his relationship with the players is sound: "Today, although I cannot speak any of the indigenous languages, I am still able to get through players when I have to, without any tensions.
"Some players, especially those I spent a long time with, treat me like a father, something that surprises me at times ..." Do you agree with Palacios' point of view? Have your say on our Facebook page HERE!