The 30-year-old, who joined on a free transfer from Arsenal last year, has scored six goals in all competitions for the Eagles.
Chamakh had been expected to stay, having made clear Palace were his first choice and his priority was agreeing a new contract.
"I've played more football this year and that's why I came here," he said in May. "It was a challenge to play regularly, to enjoy my football and have fun again.
"I lost that before so it was really important for me to find that emotion again."
Palace, who play at Arsenal in their opening fixture of the season on Aug. 16, finished 11th last season after looking destined for relegation before manager Tony Pulis arrived in November and led them to safety.
(Reporting by Alan Baldwin; Editing by John O'Brien)
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