The pair formed Seed Productions together and produced X-Men: The Last Stand, Deception, and X-Men Origins: Wolverine.
The company is also producing Avon Man and Drive, which Jackman was once attached to star in, but he has since dropped out. Palermo will continue to produce the films along with Marc Platt.
Jackman has decided to focus on his acting career, however Palermo says they will still continue to work on projects together.
Hmm, lovers spat, maybe?