Palmer, 33, also agreed to a new contract with the Cardinals. The team did not disclose the terms of the deal, but league sources told ESPN NFL Insider Adam Schefter that the restructured contract is for two years and worth $16 million. It also gives the Cardinals an out after one year if the situation is unsatisfactory. Palmer was scheduled to make $13 million this season.
"I'm here to introduce our starting quarterback and put it to bed," new Cardinals coach Bruce Arians said at a news conference on Tuesday, "and I'm really happy about it."
"I've got a lot of tread left on my tires," the 33-year-old Palmer promised.
As part of the deal, the Cardinals sent the second of their sixth-round picks (176th overall) to the Raiders in exchange for Oakland's seventh-round pick (219th overall). In addition, the Raiders will receive a conditional seventh-round pick in the 2014 draft if Palmer starts 13 games for Arizona in 2013, a league source told ESPN.
The return the Raiders received for Palmer is far less than the price the team paid to acquire him from the Cincinnati Bengals in 2011: a 2012 first-round draft pick and a second-round selection in the 2013 draft.
"This was a no-brainer," Cardinals president Michael Bidwill said. "When we learned that he would be available via trade and that we had a shot at getting him, we were aggressive. We went out there, we put our best foot forward and made sure that we got the deal done. It dragged on a little over the weekend but this morning we made sure we pushed it over the goal line and got it done."
Palmer will wear No. 3 with the Cardinals after making a donation to kicker Jay Feely's foundation for families. Feely will now wear No. 4.
"Honestly, a number means very little to me compared to building new homes in Haiti or sending someone to college," Feely tweeted Tuesday.
Palmer will help solidify a Cardinals quarterback position that has been in flux since Kurt Warner retired after the 2009 season.
Quarterback Drew Stanton signed with Arizona last month, following new coach Bruce Arians after a season with the Indianapolis Colts. At the time of the signing, Arians said he was confident Stanton could handle the starting job, but it's expected Palmer now occupies the top spot.
On Monday, the Cardinals released quarterback John Skelton, who started 17 games for the team the past three seasons.
"We'd like to thank Carson Palmer for his services over the past two seasons," Raiders general manager Reggie McKenzie said in a news release on Tuesday, "and we wish him well with the Cardinals."
Palmer put up prolific numbers in 2012, his first full season as a starter in Oakland, but that led to little success for the team, which went 4-12. He completed 61.1 percent of his passes and threw for 4,018 yards in 15 games -- second-most ever for the Raiders -- with 22 touchdowns and 14 interceptions.
"I talked to Carson, I guess it was probably Saturday, over the weekend, and kind of explained where we were at, what the process was. I think he and his representation totally understand where we're at," Raiders coach Dennis Allen said Monday in a conference call to discuss the acquisition of Flynn.
"I think, at the end of the day, when we looked at it both from his standpoint and from our standpoint, we just realized that it was time for us to move on and move forward. We felt like Matt Flynn gave us a great option," Allen said.
"I've only got a couple of shots left," Palmer said of his departure from Oakland. "I've been in this league for a long time. It's nothing personal, it's not statistical, it's about trying to win a championship."
"It's not a rebuilding process," Palmer said of the Cardinals. "It's not 'We think we're going to be pretty good in a couple of years.' They want to win now and at the point I'm at in my career, I want to win now, too. I don't have years to build and get better, I've got to be ready to play in Week 1."
"We are not in that [rebuilding] stage," Arians said. "This is too good of a football team for a youth movement. We're in it to win and win now."
Information from ESPN NFL Insiders Adam Schefter and Ed Werder and The Associated Press was used in this report.