Palace have announced that boss Iain Dowie has left his position at the club by mutual consent.
The popular manager had been in the Selhurst Park hotseat since December 2003.
Dowie was reported to have had a major bust-up with chairman Simon Jordan in the aftermath of Palace's failed play-off challenge.
However, both Dowie and Jordan attended a press conference on Monday afternoon, with the pair seeming to be parting company amicably.
Jordan said he believed Dowie's reasons for leaving Selhurst Park were mainly ‘geographical' – adding that the former Oldham boss wanted to spend more time with his family who still live in the north of England.
However, when quizzed on why he was leaving, Dowie commented that he wanted to face ‘a new challenge'.
The 41-year-old boss has been heavily linked with Premiership vacancies at Charlton and Middlesbrough.
Jordan admitted he would be ‘disappointed and surprised' if Dowie was to take the Charlton job, but added that he understood Dowie would be looking to get another job quickly.
Palace striker Dougie Freedman described himself as ‘pretty shocked' by the news of Dowie's departure and said the players had no idea such a move was on the cards.
However, Freedman was full of praise for the Northern Irishman's two-and-a-half year reign in SE25. "The manager came here to make us better players, and I think he achieved that," added Freedman.