The Broncos also signed guard Ryan Miller to their practice squad. Palmer and Miller were among the final cuts last weekend.
Palmer is a second-year pro who was on Denver's practice squad at the end of last season. He played in all four preseason games and caught one pass for 7 yards.
Miller also is in his second NFL season. The Colorado native played eight games as a rookie for Cleveland in 2012.
Earlier this week, the Broncos signed long snapper Kevin McDermott to their practice squad after guard Vinston Painter was signed to the Browns' active roster.