Hodgson first managed Palace, his boyhood club, between September 2017 and May 2021.
Chairman Steve Parish said: “I would like to welcome Roy and Ray back to the club. We are obviously in a very challenging period but we believe that Roy’s and Ray’s experience, knowledge of the club and players, alongside Paddy can help fulfil the immediate requirement of keeping us in the league.”
Roy Hodgson commented: “It is a privilege to be asked to return to the club, which has always meant so much to me, and to be given the important task of turning the team’s fortunes around. Our sole objective now is to start winning matches, and to get the points necessary to ensure our Premier League status.
“Crystal Palace is known for its fighting spirit, and I have no doubt that all our supporters will fight with us, beginning with the visit of Leicester City a week Saturday.”
With Paddy McCarthy joining the first-team coaching set-up, Darren Powell will become Head Coach of the U21s.