The defender enjoyed an impressive 22/23 campaign, making 30 appearances and wearing the captain’s armband on 14 occasions.
Having first joined the club in May 2012, Ward has accumulated 335 appearances in all competitions, the ninth-most of any Palace player in history.
Ward said: “I’m delighted to extend my contract. I’m looking forward to next season, and building on how we’ve finished during the last eight weeks.”
Chairman Steve Parish said: “Joel is a senior leadership figure at the club given his extraordinary length of service and continued high levels of performance over more than a decade with the club.
"As an important and ever-reliable squad member, we are delighted that Joel will be with us for another season.”