Palacios fears officially confirmed
The youngest brother of the 24-year-old former Wigan man was kidnapped from his parents' house in October 2007, and Honduran authorities had believed the body they found 150 miles north of the capital Tegucigalpa was that of the teenager.
DNA tests and dental records have now helped investigators identify the remains.
Police suspected the kidnappers belonged to violent street gangs in Honduras, one of the most dangerous countries in Latin America.
And although Palacios' family paid a ransom of around $200,000 to the kidnappers, their son was not released.
The Spurs midfielder had been withdrawn from Tottenham's clash with Everton at Goodison Park after reports of the body's discovery first surfaced, with manager Harry Redknapp telling Sky Sports News:
"It's been a bad day. We got a message at seven o'clock this morning that he has to rush home, that the young boy could have been killed.
"He was kidnapped 18 months ago or so, and it was bad to see Wilson in the state he was in with this bad news."