The 35-year-old has been a free agent after leaving Pescara following six months at the Stadio Adriatico during which time he played only three games.
He was linked with a switch to Selhurst Park on Monday as Eagles boss Roy Hodgson looks to do something to help turn around the club's disastrous start to the campaign.
Reports claim Palace were set to offer the man who scored 19 international goals from 57 Italy appearances a short-term deal, but he was clearly looking for something a bit more substantial and has agreed a two-year contract to sign for the Serie B side.
Gilardino will be joining his 13th club and although a prolific marksman in his earlier career, the veteran hitman has not really pulled up any trees in front of goal in recent times.
Therefore it is open to debate as to whether he would have been the man to help solve Palace's goal drought and overall malaise.