The club said plans will be submitted to Croydon Council in January and, subject to planning permission being granted, work will begin in the next 12 months.
The project is being designed by architects KSS, who have redeveloped sporting venues including Twickenham and Wimbledon.
"We need a stadium that reflects who we are, how far we have come and where we want to go - a stadium that south London can be proud of, a home worthy of our incredible support and unique atmosphere and this great Premier League we represent," Palace chairman Steve Parish said in a statement.
"We have worked long and hard and looked at several options over the years, including returning to the original site of Crystal Palace, which wasn't viable.
"While we can't go back to it, we can build a new one and today I am proud, in conjunction with our partners KSS, to introduce a new Selhurst Park with a new Crystal Palace for a new era."
The improved facilities also include plans for a bigger pitch, increased to 105 metres by 68 metres, making Selhurst Park compliant with UEFA regulations and eligible to host European competitions.
