Peter Ramage and Owen Garvan are among five players who will not be offered new contracts by Crystal Palace at the end of the season.
Crystal Palace boss Alan Pardew reckons it is best for Yannick Bolasie to stay at Selhurst Park for another season.
The 21-year-old Israel international joins up at Parkhead with fellow countryman Beram Kayal.
Biton, a defensive midfielder, will go into Neil Lennon's squad for the Champions League group stage campaign against Barcelona, AC Milan and Ajax.
He is Lennon's fifth summer signing following the recruitment of Amido Balde, Derk Boerrigter, Steven Mouyokolo and Virgil van Dijk.
Biton is an ex-team mate of Celtic defender Efe Ambrose, with whom he will hope to join up with for the Scottish Premiership clash with Dundee United at Tannadice on Saturday.
The Hoops' latest recruit will speak to the media at a press conference at Lennoxtown later today.