The redevelopment could cost up to £100million and Palace plan to submit a planning application to Croydon Council next month.
The club hope work will begin within the next 12 months, with the centrepiece of the redevelopment a five-storey stand with an all-glass front - based on the design of the Crystal Palace Exhibition Hall which was destoryed by fire in 1936.
Other intended features include a bigger pitch in line with UEFA regulations so Selhurst Park can host European tournament football, improved facilities for supporters with disabilities and a new museum.
Chairman Steve Parish said: "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.
"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.
"We are creating a new home worthy of our Club, our supporters and our community, and a celebration of our 112 years in South London."
The project is being designed by KSS, the architect firm behind the redevelopments of Twickenham and Wimbledon, and is expected to take up to three years to complete.