Holding on to Dann was seen as one of the main priorities for the Eagles - with the 28-year-old attracting a number of suitors following an impressive season last year
But, following on from the club-record signing of midfielder Yohan Cabaye last week, Palace boss Alan Pardew will now go into the new campaign buoyed by Dann's long-term commitment - with the player equally as happy.
"I'm over the moon to sign a new deal and I'm looking forward to my future here," Dann told the club's official website
"We're all going in the right direction and hopefully we can build on last year's position."
Signed from Blackburn in January 2014 by former Palace boss Tony Pulis, Dann has been an important figure at the club and, although he was linked to a number of other Premier League clubs, he was determined to build on his time in south London.
"There was some interest from other clubs over the summer," Dann said.
"I spoke to the chairman (Steve Parish) and the manager about their plans for the future, and after hearing what they had to say, and with all the other lads signing, I knew I was at the right club so I wanted to commit my future to Palace and aim for a top eight finish this season.
"The manager and the chairman were a big influence; the gaffer made it clear last season that there was no way I was leaving and I didn't want to
I'm delighted to get everything signed and look forward to the coming years.
"We're showing a lot of ambition and we're looking to push on
Everyone wants to be a part of that by signing up for longer contracts
It's an exciting time for us.
"Cabaye was brilliant when he was over here playing for Newcastle and did the same at PSG
He's obviously a top player and for Palace to attract a player like that just shows where we want to be."
Dann's performances last year saw him tipped for a first-ever call-up to Roy Hodgson's England squad - with Pardew one of those backing him to be good enough for the international stage.
The former Coventry and Birmingham man may still have to make do with two England Under-21 appearances but securing his signature, just days after the signing of Cabaye and following James McArthur also penning a new deal, will please everyone involved with Palace.
Chairman Parish said after the deal to bring in former Newcastle man Cabaye that he remains hopeful of bringing in another three signings before the start of the season - which so far promises to be one of the most anticipated in the club's history.
Source : PA
Source: PA