Warnock has not managed since leaving Leeds United in April last year despite being linked with numerous clubs.
The 65-year-old spent over two years at Palace before leaving for QPR in March 2010 and he was re-appointed by the Selhurst Park outfit on Wednesday, as Tony Pulis' replacement.
"It's a great place here. I've always enjoyed myself at Palace and I'm looking forward to the challenge," Warnock told Sky Sports News.
"It's nice to come back. I just think it's a great club.
"[They are] probably the only club I would come back to. I've had quite a few offers over the last 12 months.
"The noise they [Palace fans] make - it makes you want to come back to work."
And Warnock - who said Palace would be very active throughout the remainder of the transfer window - hinted at a season-long loan move for the 21-year-old being made official soon.
"I think Wilfried needs us, like we need Wilfried," he added.
"He's been at a big club like Manchester United and I think he's got a bit lost. I spoke to him last night for a good hour.
"Wilfried's always had a great attitude for me. He wants to learn, he wants to do extra training and he wants to improve.
"The fans [at Palace] love him and that's what he needs. He needs an arm around him. I hope that we can get the best out of him for the next 12 months.
"I think we're going to be really busy [in the rest of the window]. We've got to try and get some targets over the line. It's not going to be easy but it never is."
Pulis reportedly resigned after a breakdown in relations with co-chairman Steve Parish over the club's transfer policy.
But Warnock said he is excited to work with Parish and that he was confident the pair could help preserve Palace's top-flight status.
"He [Parish] is desperate, not just to stay in the Premier League, but to develop the club," he continued.
"We've lost a few players so there's one or two doubters.
"But we have got a good group. They are a very together group. We are going to try and get three or four players in before Monday."
