De Sa was appointed as Pirates coach after Palacios was relieved his duties in what club chairman Irvin Khoza said was due to 'health reasons'.
Palacios thanked the chairman for giving him the chance to lead a big team like Orlando Pirates.
"I want to state that it was only voluntarily that I stepped down as Pirates coach. I recently had an operation that would have taken three to four weeks to heal," Palacios tells KickOff.com.
"I want to thank the chairman for the great opportunity he gave me to coach the senior team and the cooperation received from the players while head coach at Pirates.
"I am very proud of the success with the players especially winning the League Championship last season.
"I am happy with the appointment of Roger de Sa. I know him as a disciplined coach and I believe has got what it takes to be successful at Pirates. I wish Roger all the best at Pirates," he adds.