LAFC announced on September 16, 2025, that they have extended Palencia's contract through 2028, with options for 2029 and 2030.

Sergi Palencia, a 29-year-old product of FC Barcelona's youth system, has been a key player for LAFC since joining in 2023, making 120 appearances and contributing 1 goal and 5 assists.

LAFC's co-president and GM John Thorrington highlighted Palencia's competitiveness, reliability, and leadership, underscoring his importance to the team's success.

Palencia has prior experience playing at Saint-Étienne alongside teammate Denis Bouanga, and has also played for Bordeaux and Leganés.

LAFC is aiming for a fourth consecutive MLS Cup Playoffs appearance under head coach Steve Cherundolo, who will depart at the end of this season.

Palencia played a crucial role in LAFC's victory in the 2024 US Open Cup and their run to the final of the 2024 Leagues Cup.