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Warnock, who previously managed Palace between 2007 and 2010, takes over after Pulis abruptly left Selhurst Park on the eve of the season amid reports of a disagreement with co-chairman Steve Parish.
"Crystal Palace are delighted to announce that Neil Warnock has been appointed as their new first-team manager with immediate effect," Palace announced on their official website.
"Neil has agreed a two-year deal and will lead the team this Saturday in our Premier League game at Newcastle United."
Warnock, 65, has not managed a club since leaving Leeds United in 2013, but he emerged as a front-runner for the Palace post, alongside former West Bromwich Albion manager Steve Clarke, after talks with Malky Mackay collapsed.
Mackay looked poised to be appointed by Palace, but his hopes were scuppered after reports emerged that he had exchanged racist, sexist and homophobic text messages with colleague Iain Moody when they worked at Cardiff City.
Moody had been employed as Palace's sporting director, but he resigned after Cardiff sent a file alleging misconduct to the Football Association.
Pulis was named the Premier League's Manager of the Year after steering Palace from the foot of the table to an 11th-place finish last season.
But he left the club "by mutual consent" 48 hours before the start of the new campaign after reportedly falling out with Parish over transfer targets.
Palace, who were promoted from the Championship in 2013, lost 2-1 at Arsenal on the season's opening day before going down 3-1 at home to West Ham United last weekend.
They won 3-0 at Watford in the League Cup second round on Tuesday, in Keith Millen's third game as caretaker coach.
Warnock led Palace to the Championship play-offs in his first season at the helm in 2007-08, but left the club after financial problems saw the south London club placed into administration in 2010.
The well-travelled Yorkshireman subsequently spent two years at Queens Park Rangers, guiding the club to promotion as Championship champions in 2011, before being sacked in January 2012.
He spent just over a year at Leeds before leaving in April 2013.
