Palmer's exit means a return to Toro Rosso for Russian Daniil Kvyat, who was recently axed in favour of French rookie Pierre Gasly.
Palmer has failed to make an impact at Renault, scoring just one point last season and striking out this year until a sixth-place finish in Singapore last month.
Renault boss Cyril Abiteboul paid tribute to Palmer: "I would like to thank Jolyon for his commitment to the team and his professionalism".
Palmer, whose future in F1 has been the subject of much speculation for the majority of the 2017 season, announced after qualifying at Suzuka that he will be leaving Renault following Sunday's race in Japan.
"More specifically, I really want to thank all my engineers and mechanics for their support and tremendous work throughout these years".
"I'm happy that the mechanics could put the vehicle back together for FP2 - they did an wonderful job like they always do, pushing for me and the team".
On the official statement by Renault Sport F1 Team, Palmer says it has been a journey since he joined the team back in 2015 as an test driver, before eventually becoming Romain Grosjean's replacement. "He always did his very best, demonstrating an excellent attitude and commitment to his work, which helped him and us to get some great results during that time".
"On my side, I will definitely do my very best in tomorrow's race".
"We look forward to beating him on track".
"Competing in these last four races with Renault gives me a good opportunity to get to know the team and the auto earlier than expected". Since Renault's return to Formula One, Jolyon has been highly dedicated in an evolving environment.
"I had pressure from the moment I started karting".