He kept a club record 112 clean sheets, including in both legs of the 2013 Championship playoff semi-finals and the final against Watford to help Palace reach the top flight.
"Julian has devoted the best 15 years of his playing career to our club, and will go down in the record books," Palace chairman Steve Parish said in a statement.
"But perhaps more importantly, (he) will be remembered as a true club legend by all Palace fans and everyone at the club."
The club's four-times player of the season has featured only twice in all competitions this season, behind Vicente Guaita and Wayne Hennessey in the pecking order.
"You don't get many people like Julian in elite football anymore. He's a model professional, ultra-committed, immensely loyal, and has set impeccable standards to his team mates," Parish added.
Palace, who are 12th in the league, host Bournemouth in their final match on Sunday.
(Reporting by Shrivathsa Sridhar in Bengaluru; Editing by Andrew Cawthorne)
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