Palace boss Neil Warnock had hoped to tempt the former Arsenal man to Selhurst Park.
"There was a little bit of a misunderstanding, but I think I'm going to stay," the wing-back told the Fulham Chronicle. "I didn't sign a new (two-year) contract to move on. I've been here almost four years, and I said in the past I could have moved to Benfica, but I stayed.
"I grafted in the Championship, and now we're back in the Premier League.
"Some things were said between me and Harry (Redknapp), and I don't want to say what, but I'm going to stay and give it my best shot."
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