The restructuring converts a $9.5 million roster bonus that was due on Thursday into a signing bonus, prorating it and saving $7.1 million in cap space next season for the Cardinals.
Because of the restructure, Palmer's salary cap number in 2016 will now be $19 million, and in 2017 it will be $22.6 million. Palmer signed a three-year, $50 million contract extension with the Cardinals last November.
Last month, Arizona coach Bruce Arians said Palmer is "three-to-four weeks ahead of schedule" after having surgery to repair a torn anterior cruciate ligament in his left knee.
- Molly Geary