Riedewald will be reunited with new Palace manager Frank de Boer, who handed the 20-year-old his professional debut in 2013 while in charge of the Amsterdam club.
“I am very pleased to be joining Crystal Palace and after speaking with the gaffer a couple of weeks ago I was delighted to have the opportunity to come over and play in the Premier League,” Riedewald told the club’s website.
“The Premier League is a great competition to be involved in and it is a great opportunity to be working under Frank de Boer once again having been with him at Ajax.
“I look forward to meeting my new team mates and then getting the chance to be out on the training ground and getting ready for the new season.”
Riedewald, who can operate at centre-back, left-back and defensive midfield, is Palace’s second signing of the close season, following Ruben Loftus-Cheek’s season-long loan move from champions Chelsea.
The utility man played in last season’s Europa League final defeat to Manchester United and has been capped three times by the Netherlands.
“He will be an excellent addition to our squad, Jairo is a young player but already has a lot of experience. I know he is looking forward to playing in the Premier League.” De Boer said.
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