Hammers boss Gianfranco Zola is keen for Sears to gain greater first-team experience next season and a host of Championship clubs had shown an interest.
Sheffield Wednesday and Peterborough were among the teams to have made an approach for the 19-year-old.
However, Palace have now confirmed that Sears, who failed to score in 22 appearances last term, will spend the campaign on loan at Selhurst Park.
Source: Team_Talk