Palace will be paying a portion of the striker’s wages at Chelsea – which are worth over £100,000 per week – but not the entire pay packet.
The striker has been on the fringes of the Chelsea squad over the last year, and fallen behind Tammy Abraham and Olivier Giroud in Frank Lampard’s side.
With the arrival of Timo Werner from RB Leipzig this summer, chances for the striker to play first-team football are all-but over at Stamford Bridge.
However, he will be hoping to find some form again at Selhurst Park this summer after agreeing a loan move for the 2020/21 season.
Batshuayi previously spent six months on loan with Crystal Palace in the second half of the 2018/19 season, scoring five times in nine Premier League starts, averaging a goal every 151 minutes.
The Belgium international is remembered fondly at Selhurst Park, and all parties will be hoping the move can be constructive and improve his value following a year that saw him play little first-team football.
Palace were initially interested in a loan move for Chelsea youngster Conor Gallagher, but rules dictate that clubs can only sign one player on loan from each Premier League club.
Roy Hodgson and Palace have decided that the need for reinforcements in attack outweighs that in midfield and moved to bring in Batshuayi.