The 84-year-old, who has been club president for the past 13 years, died peacefully in his sleep at the Princess Royal University Hospital in Bromley on Saturday night.
A former personnel director for Tesco, Morley was awarded the CBE for his services to vocational training in 1994.
Palace chairman Steve Parish took to social networking site Twitter to express his sorrow at the death of Morley.
He wrote: "Terribly sad news that club President Peter Morley has passed away. Thoughts are with Paula and Alex, he will be greatly missed by us all."