Remy loaned to Crystal Palace by Chelsea
Remy, 29, has been used sparingly since joining Chelsea from Queens Park Rangers in August 2014, making 46 appearances and scoring 12 goals.
The move to Selhurst Park reunites him with Palace manager Alan Pardew, who was Remy’s manager during the 2013-14 season at Newcastle United.
“This is a very good chance for me and a big opportunity,” Remy told the Palace website.
“It was very important to know Alan Pardew as he is a very good manager and I am happy to be here.”
Remy won the Premier League title and the League Cup in his first season at Chelsea.
But Chelsea’s reliance on Diego Costa meant he rarely featured last season and he would have faced extra competition from new signing Michy Batshuayi had he remained at Stamford Bridge.
The former Lyon, Nice and Marseille striker has won 31 caps for France, scoring seven goals, but has not played for his country in nearly two years.
“Loic has been a target of mine throughout this transfer window and I’m delighted the deal has been done,” Pardew said.
“I brought him to Newcastle so I know what he is capable of and I am convinced he will be a quality addition to our squad as we evolve.”
Remy was the second Chelsea striker to be loaned out on Tuesday after Patrick Bamford moved to Burnley.
He joins former Marseille and France team-mate Steve Mandanda in arriving at Palace for the new season, along with Andros Townsend, James Tomkins and Christian Benteke.
Palace are 17th in the Premier League table and yet to win after the season’s first three games.