Panasiuk has started the past two seasons for the Spartans. Last year, he finished with 34 tackles and five sacks.
"Our country is facing difficult times with many unanswered questions regarding COVID-19," Panasiuk wrote. "Unfortunately, with the uncertainty of the effects of COVID-19, I cannot risk my health and safety in order to play football this season."
On Wednesday morning, West Virginia safety Kerry Martin announced that he was sitting out the season because he didn't feel it was safe to play.
The NCAA directed schools on Wednesday to allow players to opt out due to concerns about contracting the coronavirus and that their scholarship commitments must be honored.
The Big Ten announced plans for the upcoming season on Wednesday, including a 10-game conference-only schedule that would begin as early as Sept. 5.