With Palace’s No.2 ‘keeper Wayne Hennessey expected to be out until February, Palace have sealed Butland to secure cover for Vicente Guaita.
Butland has not featured for Stoke this season having fallen out of favour, but the 27-year-old has nine England caps to his name and was handed his Three Lions debut by Palace boss Roy Hodgson in 2012, starting in a 2-1 win over Italy.
Hodgson said of Butland’s arrival: “I’m very happy that the club has managed to acquire the signature of Jack to join us and compete for a place amongst our goalkeepers at the club. Jack is a player that I worked with for four years at England.
“His last game for me as England manager was a very unfortunate one where he broke his ankle and that cost him his place in the 2016 Euros. But I’ve always believed in Jack’s potential.
“I am aware that his last spell at Stoke hasn’t been the happiest one for him but I sincerely believe that with his qualities, coming to a new club will enable him to resurrect his career and show once again what a good goalkeeper he is.”
Liverpool had been linked with a move for Butland, with former West Ham goalkeeper Adrian struggling as the deputy at Anfield, while Southampton had also been keen earlier on in the window.
Butland becomes the fifth new arrival at Palace since last season, with Eberechi Eze, Michy Batshuayi and Nathan Ferguson all signed during the regular transfer window, while academy graduate Nathaniel Clyne was handed a short-term deal having become a free agent.