The 28-year-old played every single Premier League minute last season, one of only three outfield players in the league to have done so. He scored 12 goals for the Eagles during the campaign - bringing his total up to 24 from 88 games, making him the club's leading goalscorer in consecutive seasons.
Joining Palace on deadline day in January 2017, Milivojevic arrived from Greek titans Olympiacos and scored his first goal in a 3-0 victory over Arsenal in April that year. Since then he has become club captain, and played his part in several memorable victories – many of which helped the club reach its highest ever Premier League points tally last season.
Chairman Steve Parish added: “Luka has been a fantastic player and leader for the club for two and a half years. His contribution really has been immense and I am delighted that he has agreed to pledge his long term future to Crystal Palace.”
The captain will share his thoughts on the agreement exclusively to Palace TV early next week.