Work with Panels?

Actually it currently does not support panels. If you have a patch for that, you are welcome but I don't intend to implement such a functionality.

Patch that addresses this very issue, I believe, assuming a custom page manager term page is what you are referring to here.

Thanks for your patch. I work currently on the 2.x version of Term Fields, which is really different from the first one.
So add support for Panels would be a new interesting feature, not only in context but also as access plugin and content type plugin and probably as relationship.
I prefer to first finish the new implementation of the module, then think about a development direction for Panels (actually not really Panels but cTools plugins) integration and will come back to you, if you eventually have some time for helping me.

Ah, okay, I'll take a look at the 2.x version. I do have an update to my patch that I'll submit on this.
FYI, this patch is a ctools alter rather than a plugin, but allows the term_field to show up in the substitutions list in a term page content panel.

Re-adding the patch. Forgot returns in the functions.

This patch
* Implements hook_ctools_context_convert_list_alter().
* Implements hook_ctools_context_converter_alter().

To add the term_fields to term page substitutions.

Previously submitted patch should be removed.

I would be interested in taking over maintenance, or helping to maintain the 6.x-1.x version.

Could you please open a separate issue, asking for co-maintaning the module?
I am about to finish the alpha version of the 6.x-2.x branch, so your help would be really appreciated on this new version, for which the code has been totally rewrited.

Any update on this? Does 2.x code support panel?

Still not.
The patch in #6 need to be adapted to 6.2 branch.