The Spanish shot stopper fast became a fan favourite at Selhurst Park after joining from Getafe in 2018.
He has since made 80 appearances for Palace, securing 24 clean sheets, and received the club’s Player of the Month award on four occasions.
Upon putting pen to paper, Guaita said: “I am so happy to extend my time at Crystal Palace with my contract until 2023.
“My family is really settled here in south London, and I have enjoyed my time with Roy, Deano, all the coaches, and my teammates playing in the Premier League, and have a great relationship with the fans of Crystal Palace.”
Chairman Steve Parish added: “I am delighted that Vicente has committed his future to Crystal Palace.
“He is an extremely talented goalkeeper whose contribution has been invaluable over the last few seasons and I am sure will continue to be so in the upcoming months and years.”