The 72-year-old former England and Liverpool manager, whose previous deal was due to run out this year, said he was delighted to prolong his stay at the London club.

"I am proud of what we have achieved since I was appointed two-and-a-half years ago, and I look forward to us working together for the foreseeable future," he told the club's official website.

"Everyone knows how I feel about the club that I supported as a boy. I feel a special bond with the supporters and know that myself, the owners and the players are all working together to achieve the same goal."

Chairman Steve Parish said: "I'm delighted that Roy has agreed to extend his contract with the club, and has reinforced his commitment to help us extend this period of unprecedented stability in the top flight."

Palace are currently 12th in the Premier League table after consecutive wins against Newcastle and Brighton.