The Spanish goalkeeper has played over 140 times for the Eagles since joining in 2018, securing 44 clean sheets in the process, and also claimed the club’s Player of the Season for his efforts in the 20/21 season.
Chairman Steve Parish said: “We are delighted to see Vicente commit to a further year at Palace. Over his five years with us, his performances have been consistently excellent and remains one of the top goalkeepers in the Premier League.
"He is popular member of the dressing room and understandably a fans’ favourite, and it’s fantastic to extend his time with us.”
On the extension, Guaita commented: “I am very happy to stay here at Crystal Palace for another season - I love it at this club and my family are settled here.
"I have played nearly 150 games over five years, and I hope for many more. Thank you to the club for their belief in me, and to all the amazing fans for their support."