Former England boss Hodgson, who had been under growing pressure, was hospitalized after falling ill during a training session last week as reports swirled that he would be sacked.
In a statement released by the team, Hodgson, 76, stated that he was leaving to enable them to "bring forward their plans for a new manager."
Glasner was named by Palace as Hodgson's replacement shortly after, and the Austrian player agreed to a contract that would last until the end of the 2025–2026 campaign.
"I am thrilled to join Crystal Palace FC as manager," said the 49-year-old Austrian, who led Eintracht Frankfurt to Europa League glory in 2022 and managed LASK and Wolfsburg.
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"I am looking forward to working with the talented squad, meeting the club's supporters and experiencing the Selhurst Park atmosphere I have heard so much about."
Steve Parish, the chairman of Palace, stated: "I'm thrilled to have Oliver join the team. His stellar track record makes him the ideal manager to lead the team at this crucial juncture.
"Wherever Oliver has gone so far in his managerial journey, success has been quick to follow, and we believe his ambition, as well as his exciting and attacking approach, is the perfect fit."
After dropping 10 of their last 16 league games, Palace finds itself in serious trouble as they sit 16th in the standings, just five points above Everton, who are currently in third place and will play them later Monday.
Ray Lewington and Paddy McCarthy, Hodgson's assistants, will lead the squad at Goodison Park.
Following a humiliating 4-1 loss at Brighton, Hodgson's last game as Palace's manager was a 3-1 home loss against Chelsea on February 12.
He affirmed that he had the "strength, the resilience and the determination" to turn around the team's dismal form following the loss to Brighton.
After leading the south London team from 2017 to 2021, the former manager of Inter Milan and Liverpool made a reappearance in March of last year.
After Patrick Vieira resigned, he took over temporarily, leading them to an 11th-place finish and out of relegation danger.
