British media reported the transfer fee for the versatile Riedewald, who is primarily a centre half and has three caps, was close to 8 million pounds ($10.42 million).
"I am very pleased to be joining Crystal Palace and after speaking with the gaffer (manager) a couple of weeks ago I was delighted to have the opportunity to come over and play in the Premier League" he told the club website (www.cpfc.co.uk).
Riedewald played 93 times for Ajax, scoring three goals, and won the Eredivisie title in 2014 under De Boer, who said: "He will be an excellent addition to our squad, Jairo is a young player but already has a lot of experience."
(Reporting by Christian Radnedge; editing by Ken Ferris)
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