Jobi McAnuff will remain a Palace player next season, following talks with boss Peter Taylor and chairman Simon Jordan.
The 24-year-old winger was believed to be angling for a move away from Selhurst Park, with Premiership new-boys Watford leading the chase for his signature.
However, following a chat with the management, McAnuff has now had a change of heart.
"I had a meeting on Monday and was pleased with how it turned out," said McAnuff.
"I said to the chairman it's a known fact I want to play in the Premiership and if the opportunity arose I would have considered it.
"But at the same time I'm contracted to Crystal Palace and I've got a job to do here and want to give my best."