 Arcoleo was recalled to coach Palermo in the latest matches of the 1997/1998 Serie C campaign, with the "rosanero" involved in a heavy struggle to avoid relegation, ended to a shocking loss to Battipagliese on playoffs which meant to be the second consecutive relegation for both Arcoleo and Palermo.Since then, Arcoleo coached a number of Serie C teams (Gualdo, Foggia, Frosinone, Nocerina) never being able to end the season in his position.In 2006, he also made a comeback at Trapani, now in Serie D, as "technical director" and aide for the head coach, but did not achieve any success and instead saw his team relegated to Eccellenza.