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On 5 July 2019, Palencia joined AS Saint-Étienne for a fee of €2 million, with an additional €1 million in variables. Barcelona maintained 20% of his future transfer fee. On his debut on 1 September, a 1–0 loss at Olympique de Marseille, he sprained his right ankle under a challenge from Jordan Amavi and was ruled out for six weeks.

On 16 August 2018, Palencia joined Ligue 1 side FC Girondins de Bordeaux in a season-long loan deal. He played 31 total games, starting on 19 August in the season-opening 2–1 loss at rivals Toulouse FC in the Derby de la Garonne.

On 10 August 2016, Palencia was named the B-team's captain. He achieved promotion back to the second level at the end of the campaign, and renewed his contract until 2020 on 5 October 2017.

On 29 March 2015, while still a youth, he was called up to the reserves for a Segunda División match against CD Tenerife, and played his first match as a professional hours later, starting in a 1–1 home draw. He and Álex Grimaldo were sent off on 25 April 2015 in a 2–1 win over SD Ponferradina at the Mini Estadi. Palencia played eleven matches in a season which saw his team relegated to Segunda División B, scoring his first goal on 31 May in a 2–5 loss to CD Leganés at the Mini Estadi.

Born in Badalona, Barcelona, Catalonia, Palencia started playing football for hometown club CF Badalona at the age of 8, moving to FC Barcelona's youth system, La Masia, in 2006. In 2013, he was compared to FC Bayern Munich full back Philipp Lahm by Spanish newspaper Mundo Deportivo.

Sergi Palencia Hurtado (born 23 March 1996) is a Spanish professional footballer who plays as a right back for French club AS Saint-Étienne.