Warnock was sacked on Saturday following Palace's 3-1 defeat to Southampton a day earlier, with Newcastle United boss Pardew expected to take over in the hot-seat.
Newcastle confirmed on Monday that former Palace player Pardew had been given permission to speak to the London club, with confirmation of the move now expected imminently.
Warnock only began his second stint at Selhurst Park in August following Tony Pulis' shock departure and, despite his exit still being fresh in the mind, the 66-year-old believes Pardew will take the club forward.
Speaking to talkSPORT, he said: "When we were at Newcastle for my first game, I remember pulling Alan after the game and saying: 'This is the club for you, this is your next club'.
"I only wanted, this season, to try and help them stabilise after the terrible blow they had when Tony Pulis left.
"There were no standout candidates and I said to the chairman then that he might as well put me in charge and then wait for one that is going to take the club on and this is it. I think Alan is a great appointment.
"He will be given a long contract, which is needed because the infrastructure at Palace is very poor, Premier League-wise, and he will get the chance [to change things]."
Warnock managed only three Premier League wins during his most recent spell at Palace, leaving the club in the bottom three.
However, the former Leeds United and QPR boss believes he would have turned their fortunes around given time, adding his belief that the club could secure a mid-table finish this term.
"I still don't think they are far away. All we wanted was a striker and a left-sided defender," he added.
"I think I can hold my head up with the way we played, with what we had and the tools we had at our disposal. Every manager makes mistakes but we have given them a fighting chance.
"I think in the fight for survival [Palace] have miles more than anybody else. I can even see them going up as high as they did last year, 11th or 12th, with Alan."
