Gordon was a member of Chelsea's youth team and also featured for the club's reserves, but he has decided to move on for pastures new.
A number of clubs are thought to have expressed an interest in Gordon, but Palace have moved quickly to bring in the player
Versatile performer Gordon, who can play at right-back, centre-back and midfield, is thought to have agreed a one-year professional deal at Selhurst Park.
The 18-year-old has represented England at schoolboy and Under 17 level and Palace have high hopes that he could establish himself at Selhurst Park.
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