Chamakh becomes Holloway's seventh new signing since they clinched promotion from the Championship.
Holloway, speaking after Palace had lost 1-0 against Lazio, said: "I normally do okay with people whose careers are faltering. I love them up and work with them, and hopefully I can get him back to how he was after he joined Arsenal.
"There was nothing wrong with him then when he scored eight in nine. But I wouldn't fancy being Robin van Persie's understudy, it can't have been fun."
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