He helped steer the Selhurst Park club away from the relegation zone, taking 18 points from his 10 games in charge to finish 11th in the Premier League.

Hodgson said he was "immensely pleased and proud" to be staying at Palace.

"I know what a fantastic squad we have here," he added. "It's a great blend of youth and potential, alongside experienced players with Premier League and international pedigree.

"I have spoken with the chairman [Steve Parish] 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."

Hodgson spent four years at the club from 2017 but decided to step away from football in the summer of 2021.

The former England boss was then appointed Watford manager in January 2022 but left five months later after they were relegated to the Championship.

Palace were without a win in 12 matches in all competitions under Vieira before Hodgson returned to his boyhood club.

His managerial career has spanned more than 45 years and includes stints at Inter Milan, Blackburn Rovers, Fulham, Liverpool and West Brom, while he has also led the national sides of Switzerland, United Arab Emirates and Finland.