The 27-year-old has built a reputation across the continent for combining his defensive duties with an attacking prowess going forwards, scoring seven goals and providing two assists in 2023/24 so far.
The Colombia international began his career in his native country, earning a move to Atlético Nacional, the nation’s most successful side. He moved to Europe in 2020, heading to Belgium to join Genk and winning the Belgian Cup the same season.
His international debut followed in 2021, and he has since notched up 23 caps for Los Cafeteros, including in Colombia’s run to the semi-finals of the Copa America where they narrowly lost on penalties to Lionel Messi’s Argentina.
He will become Palace’s second Colombian player, alongside international teammate Jefferson Lerma.
Chairman Steve Parish said: “We are delighted to welcome a player of Daniel's quality and character to the club.
“He has experience at the highest level for club and country, and he possesses an impressive record going forwards for a full-back. I am certain his ability, athleticism and tenacity will be a huge boost to the squad for the remainder of the season, and beyond.”
Muñoz said: "It's a pleasure for me to be here at such a historic club, such a big club as Crystal Palace. I'm very excited, very happy, and I can't wait to be on the pitch.
"I think it's a dream come true for me and I hope to be up to the task."
Everyone at Palace would like to welcome Daniel to south London and wish him the very best for his career in red and blue.