The 35-year-old, who won three caps for his country and was a member of the Confederations Cup-winning squad in 2013, was a free agent after leaving Fluminense in his homeland last year.
Cavalieri will provide competition for Palace's two senior goalkeepers, Julian Speroni and Wayne Hennessey, as Roy Hodgson's side battle against relegation from the Premier League.
"I am very happy to be here and have been training with the guys for some time now," Cavalieri told Palace's website.
"The atmosphere in the dressing room has been really good and they have received me very well so we can talk a lot and get to know everyone. I am very happy with this opportunity."
Cavalieri was previously on the books of Premier League side Liverpool between 2008 and 2010, during Hodgson's period in charge, but failed to make a league appearance during his time at Anfield.