Gray has extended his loan stay with Hartlepool and will now remain at Victoria Park into the New Year, the club have confirmed.
The 19-year-old joined the club on loan from Palace earlier this month, and has made three appearances so far.
"I'm really pleased that Jake will be staying with us," manager Ronnie Moore told the club website.
"I know he's enjoyed his time with the club so far. I am sure he will continue to gain from playing regular senior football."