The Honduras midfielder, who saw a transfer to Qatar Sports Club fall through due to a failed medical earlier in the close-season, has found opportunities limited since Hughes took the Britannia Stadium reins last year.
And, while conceding Palacios may need to move on to find more playing time, Hughes said he was unaware of any renewed interest in the player.
"I'm not aware of that interest," he said. "He had an opportunity to go to Qatar which would have been good for him but that fell through.
"We like him as a person and a player but sometimes it's right to move on.
"Interest from other Premier League clubs is not something I'm aware of."
Another player who could be on their way out of Stoke is Ryan Shotton, with Derby County being linked with a loan move for 25-year-old.
And Hughes would back a temporary switch to the Championship club.
"If it works for both parties," he added. "Ryan needs to be at a club where he gets more opportunities, it's fair to say he hasn't had that since I've been here.
"He hasn't been able to force his way in and, for his career to start going in the right direction rather than being in a state of limbo, it's probably better he moves on.
"If it is Derby, I would encourage that as they are bidding for a place in the Premier League."
Stoke face Hull City in the Premier League on Sunday.
