The 27-year old has been with the Posh since 2007, apart from a loan stint with Nottingham Forest, but looks certain to continue his career at Selhurst Park according to Peterborough chairman Darragh MacAnthony.
"We have agreed terms with Crystal Palace for the transfer of George Boyd tonight. The player will now talk terms with Palace,” he posted on Twitter.
"It's obviously sad news for us at Posh but we couldn't turn this opportunity down for the player.
"Many clubs have made bids which in truth were verging on taking the mick, however CP have backed their manager & met our terms today.
"George has been a Palace fan all his life & now has chance if he joins them to help them get promoted to Premier League."