The former England boss, 73, has been in charge of the Eagles since September 2017.
His final match will be against Liverpool at Selhurst Park on Sunday.
After nearly four years of managing his boyhood club, Roy Hodgson will be stepping down as our manager at the end of this season following the end of his contract.
"After more than 45 years of coaching I have decided that the time is right for me to step away from the rigours of top-flight Premier League football," said Hodgson.
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