The board decided to relieve De Boer of his duties on Monday after just 77 days in the job, with Burnley’s 1-0 defeat his fourth in as many matches, with them yet to score a goal this season.
Hodgson will be returning to the club with whom he began his playing career in 1965, before going on to coach around Europe, with spells at Inter Milan and Liverpool arguably his most high-profile appointments.
His last job was with England where he infamously oversaw the Euro 2016 defeat to Iceland.
The Croydon-born 70-year-old is now back in the game, signing a two-year contract and the 70-year-old admits he is excited about the task that awaits.
Hodgson told the club’s official website: “It is very rewarding to find myself here now, in different times, as the Palace manager at a club that I have always loved and admired with a huge potential.
“The ambitions here are realistic and there is an enormous potential for growth and I hope we can achieve our goals.”