The teenage defender joined Palace from the Arsenal Academy in February this year, and played seven games in her debut season.
Gracie Pearse has signed a season-long loan deal with Crystal Palace Women.
This summer, Pearse signed a deal with Tottenham Hotspur, but has been loaned back to Palace as they seek to improve on their seventh-place finish in the FA Women’s Championship.
Commenting on retaining Pearse’s services for the new season, manager Dean Davenport said: “Gracie is a very talented young player with a bright future ahead of her. She fast became an important part of the squad last season and having her play for us throughout the next campaign is a huge bonus. Spurs have been very supportive in this process, so I thank them for that.”
Pearse herself added: “I'm delighted to return to Palace for another year, which is a real chance for us to push on and improve on our strong league finish last season. I really enjoyed my time at the club and felt I developed as a player alongside great teammates and under some experienced coaches, so am excited to see what this season holds.”