The 26-year-old's move to Selhurst Park had been widely speculated in the media, with both clubs confirming the deal on Friday for an undisclosed fee.
Cambell, formerly of Manchester United, moved to Sunderland in 2009, before another switch to south Wales for the second half of the 2012-13 season.
The striker's seven goals in nine appearances helped fire Cardiff to the Championship title that year, but he was unable to stop the Welsh outfit from dropping straight back to the second tier last season.
Campbell netted six times in 37 Premier League appearances as Cardiff, under Malky Mackay and then Ole Gunnar Solskjaer, ended the season bottom of the table, six points adrift of safety.
"We'd like to place on record our sincere thanks to Fraizer for his efforts in the City shirt, having joined us in January, 2013," said a brief statement on Cardiff's official website.
"We wish him the very best for his future endeavours."
‘Newcastle’s board said I was over the hill, so I left and played 108 consecutive games and won the European Cup – not a bad way to answer that accusation!’: Ex-Magpies defender reflects on career highlight after proving former side wrong
‘Parma viewed him as the perfect replacement for Adrian Mutu, who’d left to sign for Chelsea. But Manchester United’s interest was much more concrete’: Cristiano Ronaldo's 2003 transfer details revealed by former Sporting director of football
