Sako is no stranger to English football, having made 118 appearances for Wolverhampton Wanderers for whom he scored 36 goals. He played for Mali at this year's Africa Cup of Nations.
With his contract having expired at Wolves, the 27-year-old was a free agent and he said he talked to several clubs before the call came in from Palace boss Alan Pardew.
"He (Pardew) plays attacking, attractive football so it should be good to play here and score some goals, that's why I came to join him," Sako told the club website (www.cpfc.co.uk).
"I'm confident about stepping up to the Premier League so we'll see how it goes."
(Reporting by Martyn Herman; Editing by Clare Fallon)
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