Meyer, 22, became a free agent in the summer after making almost 200 appearances for Schalke.
And Selhurst Park will be his new home from 2018-19 onwards after the Eagles announced the completion of a free transfer.
"Crystal Palace have completed the signing of German international midfielder Max Meyer, who has agreed a three-year deal at Selhurst Park," Palace signalled on the club's official website.
"The 22-year-old becomes the Eagles' third summer arrival following Vicente Guaita’s capture last month and Cheikhou Kouyate’s switch from West Ham United, and Meyer will wear the number 7 shirt in south London."
Speaking to the official website, Meyer admitted that the Premier League was a big factor in his decision to join the south London club.
"I feel really good and I'm happy to be here. I can't wait to start training with the team and I hope I'll have a good season," he said.
"I'm proud to be here and I hope I can make the next step in my career. I want to give my best and I think we can have a good season - maybe better than the last.
"I played at Selhurst Park last season for Schalke and the atmosphere was perfect, and I can't wait to experience the atmosphere for a Premier League game."