The Eagles confirmed the capture of the 25-year-old Belgium international after the clubs agreed a fee of an initial £27million plus add-ons.
The move comfortably dwarfs Palace's previous record purchase, set only this summer when they bought Andros Townsend from Newcastle for £13m.
"I'm very happy to commit my future to Crystal Palace and I'm looking forward to meeting the manager, the players and the staff," Benteke told Palace's official website.
"I feel really happy that the deal has been done and now I can look forward."
Benteke failed to take off at Liverpool after moving from Aston Villa last summer, but brings to Selhurst Park a record of 51 Premier League goals in four years.
Speaking about the protracted move on Friday, boss Alan Pardew praised his club's board for sanctioning the deal.
''It's important when you lose iconic players to try and replace them with iconic players
We've lost two this week, Mile Jedinak and Yala Bolasie
Both were massive figures at this club and we will need to replace them with big figures," he said
''That's something that didn't always happen at (former club) Newcastle, unfortunately, so I'm pleased the board have been brave with this move
''He's someone I know very, very well because I wanted to take him to Newcastle
I thought he'd be a fantastic fit for that club
He got the move to Liverpool and it hasn't quite worked out
''For us, we need to get him back to doing what he does best
His style of play, the way he feeds off crosses..
''He'll enjoy that with the wide players we have."
Source : PA
Source: PA