The teenager will be offered an improved contract by the Division One club after impressing Eagles boss Iain Dowie this season.
The former Palace trainee is pleased to stay with the South East London outfit and knows he must continue improving his game.
"It's going well," Routledge told the Croydon Advertiser. "But there's no point in taking one step forward two steps back. I need to keep improving.
"The fans know how I feel about the club. I've been there all my life.
"They've done a lot for me and at the moment they're looking to do a new deal, which is good.
"They're looking to keep me for the future. I'm just going to keep playing and trying to see where the season takes us.
"Hopefully, we'll be in the play-offs and we'll take it from there. We'll see what materialises."
Meanwhile, Dowie has told three of Palace's academy youngsters that they have no futures at the club.
Gavin Heeroo, Tariq Nabil and James Gibson will not be offered new contracts by the club, despite being on the fringes of the first team this term.
"I cannot take time over this and then tell them in May that they're no longer required," Dowie told the club's official website. "That's not right for the players.
"I've spent time with them and made a decision on what I have seen in reserve games."
