Palacios has been training with Hull for nearly a month now but Bruce has still not awarded the Honduran international a deal with the Championship club.
Bruce has recently revealed the situation surrounding Palacios, who is a free agent after leaving Stoke City earlier this summer, and has reiterated that the midfielder will only be handed a deal if he is able to reach the desired level of fitness within the next few weeks.
"We're going to see how he is over the next few weeks," said Bruce. "We said we'd give him a couple of months. You don't just turn around your fitness levels in the three weeks that he's been with us.
"We're going to try and put him on a fitness programme to see if he can regain the fitness levels that will be required. If he gets there, which I sincerely hope he does, then we've got a very good player on his hands. I know him well so we'll just have to wait and see how he gets on."