Palacios previously took charge of Pirates in 2012 on an interim basis from Julio Leal, and guided Bucs to the league title.
stint, he worked with both McCarthy and Jali successfully as Bucs claimed a
fourth Premiership title.
The Peruvian enforced strict discipline when he took over
from Leal for what was then his fourth stint in charge, and is employing
similar methods for what is now his fifth spell at the Bucs helm.
Ahead of Pirates' Telkom Knockout quarter-final on Saturday,
the 64-year-old revealed his philosophy of how he is approaching the job he has
to do at the club.
He told reporters: "Discipline is important - players must understand that the club is paying for professionals.
"I have no room for favouritism - I will create a competitive atmosphere like I did with McCarthy and Jali. I believe in competition. I told the players that hard work will be rewarded with selection."