Palmer, 33, is scheduled to make $13 million next season and $15 million each in 2014, 2015 and 2016 as part of a four-year, $43 million contract he signed in 2011. The last two years of the deal can be voided.
The Raiders traded for Palmer during the 2011 season and sent a 2012 first-round draft pick and a second-round selection in the 2013 draft to the Cincinnati Bengals. The Bengals used the 2012 first-round pick to select cornerback Dre Kirkpatrick.
Palmer threw for 4,018 yards with 22 touchdowns and 14 interceptions last season for the Raiders.