Hodgson returned to Selhurst Park in March and guided the club to safety – for a fifth time – with a remarkable run of results and an 11th place finish, and will lead the side into next season alongside Paddy McCarthy as assistant manager, Ray Lewington as coach and Dean Kiely as goalkeeper coach.
The vastly experienced manager first took charge of his boyhood club between 2017 and 2021 and has overseen 172 Palace games from the dugout, more than at any other club.
Upon extending his stay in south London, Hodgson said: “I am immensely pleased and proud to be extending my time at Crystal Palace, and I would like to thank the Chairman and Sporting Director for their continued faith in me.
“I know what a fantastic squad we have here. It’s a great blend of youth and potential, alongside experienced players with Premier League and international pedigree.
“I have spoken with the Chairman at length and we agreed that we must be ambitious in getting the most out of such talent. As such, we have set ourselves the target of a top-half finish, which we believe is eminently achievable with such a fabulous group of players and the most magnificent supporters who get behind the team, week in, week out.”
Club Chairman Steve Parish said: “Roy’s record as manager speaks for itself. His return earlier this year along with Ray Lewington and assisted ably by Paddy McCarthy produced a fantastic return both in results and producing some stylish performances, helping us climb the table and get international recognition for our players.
“Appointing Roy for another season will enable him and the squad to hit the ground running for a full pre-season and continue the magnificent momentum that has built up since his return.”