The former Newcatle United was appointed on a three-and-a-half-year deal in January 2015 but the 55-year-old has been dismissed after a run of one victory in 11 games.
The Eagles' in an official statement through its Chairman Steve Parish on its website said: "Crystal Palace F.C. have today asked Alan Pardew to step down as Manager of the Club.
Club Chairman Steve Parish said: "I would like to put on record our sincere gratitude for the tremendous service Alan has given us, both in his time here as Manager and previously as a player.
"Following a fantastic second half of 2014/15, the 2015/16 season culminated in only narrowly missing out on winning the FA cup as well as securing our Premier League place for a record breaking fourth time.
"During his tenure Alan’s hard work and dedication were without question, he has improved so many areas of the Club and we wish him the very best for the future.
"With games now coming thick and fast over the holiday period the Club are hoping to put someone in place as quickly as possible but have nothing to say about a replacement at this time."
Palace have taken just 26 points from the 36 Premier League matches they have played in 2016 and are only one point above the relegation zone.
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