The 30-year-old Belgium international would have seen his previous deal expire at the end of this month but an impressive end to the 2020/2021 season has seen him get rewarded with a new contract.
Benteke has been with the Eagles since the summer of 2016, having joined from Liverpool for an initial club record fee of £27m.
Benteke scored 10 Premier League goals in 30 appearances in the just ended season as Palace finished 14th on the table.
'I’m happy and proud to commit my future to Crystal Palace,' Benteke told the club's official website.
'Five years already and still a lot more to come. We have a great group of players and staff, and I’m looking forward to the season ahead and playing in front of our fans again.'
Palace chairman Steve Parish added: 'Christian has been an integral part of consolidating our position as an established Premier League club over the last five years.
'He is an outstanding professional and has more than proven that he still has the quality and the hunger to perform for our club at the highest level, and I couldn’t be happier to see him in red and blue for another two seasons.'
Benteke has been named in the Belgium squad for the 2020 European Championship which begins next week.
