Palmquist was designated for assignment by the Rockies on Thursday.
Palmquist has posted an inflated 7.20 ERA and 2.16 WHIP over 25 innings in 12 appearances, including five starts, with Triple-A Albuquerque this season. If he clears waivers, he'll likely remain with the Triple-A squad. The move was made in order to create a spot on the 40-man roster for infielder Chad Stevens, who had his contract selected Thursday.