The former Stoke manager was quickly backed into favourite for the vacancy with Sky Bet, replacing Neil Warnock at the head of the market.
Holloway's departure from Selhurst Park by mutual consent was confirmed at a press conference on Wednesday night as the former Blackpool boss admitted he was not the man to save the club from the drop.
The 50-year-old, who watched his team lose 4-1 at home to Fulham on Monday, was brutally honest as he revealed he did not have the energy for the relegation fight and claimed the club had lost the spirit which helped them win promotion last season because of their raft of summer signings.
The upshot is the club need a new manager just nine games into a campaign which has yielded a mere three points so far, from a win over fellow strugglers Sunderland.
Palace co-chairman Steve Parish said they needed someone with top-flight experience and on Pulis, he said: "He's never been relegated, and he's out of work. We'll look.
"People with some kind of affinity with the club, that does help when times are tough.
"I wouldn't discount anyone."
Pulis left his position at the Britannia Stadium in the summer after seven years in charge, during which time he became renowned for unattractive yet effective football.
Keith Millen will take temporary charge of Palace for the match against Arsenal on Saturday.
Parish emphasised that he never had any intention of sacking Holloway, praising him for doing the "honourable thing" and admitting he was not the man for the job.
He said: "He leaves our club with his head held very high."
Holloway also leaves an exhausted man after less than a year in the job. He only took over at Selhurst Park last November and led them to promotion via the play-offs.
But this season only Sunderland's woeful form has kept them off the foot of the table and the thrashing at home by fellow strugglers Fulham was the final straw.
Holloway said: "This club needs an impetus of energy. But I just feel tired to be honest. I'm worn out.
"I want to give them the chance to stay in this division."
Palace signed enough players for an entire new team over the summer and Holloway said: "I didn't value enough the spirit of the group that helped us get to the Premier League
"I've lost the spirit of that group. I owe it to the lads to admit that.
"I'm not saying my new signings aren't good enough. But they need to buy into this football club the same way my other lads did."