The renewal comes as a significant boost for Palace after doubts earlier this year over Kamada's future, when it appeared he might leave the club once his contract expired at the end of the season. Those fears have since been put to rest, much to Parish's delight.
"This is fantastic news for Crystal Palace," he said.
"The last two years Daichi has made a great difference in central midfield, and he has also become a fan favourite both on and off the pitch.
"I am glad that he has said no to the many opportunities he had and instead extends his time in south London."
Parish confirmed Kamada would be given time to rest after an excellent World Cup with Japan before linking up with his club-mates.
"Daichi now gets a well-deserved break after his outstanding World Cup and joins us later in pre-season as we head into a busy Premier League and European campaign."
Kamada himself sent a short but pointed message to supporters after signing the extension. "Thank you for everything. We win another trophy. I give everything, I promise you. See you soon."
The midfielder has become an increasingly important figure in Palace's midfield since joining the club, contributing to a period that has included the club's first major trophy and a return to European football, success that has clearly played a part in persuading him to commit his future to Selhurst Park rather than test the market elsewhere this summer.
Kamada has made 89 appearances for Palace since his arrival, scoring three goals and providing eight assists, and had also been strongly linked with a reunion with former boss Oliver Glasner, who departed for Nottingham Forest earlier this summer, before opting to stay and continue working under new manager Pierre Sage instead.