Wood will be reunited with former Seasiders boss Ian Holloway on the eve of this weekend's highly-anticipated clash between the two clubs at Selhurst Park.
The 60-year-old former Blackpool player is the latest member of coaching staff to follow Holloway to the capital after Keith Millen was confirmed as Eagles' assistant manager upon the Bristolian's appointment early last month.
A statement on Blackpool's official website read: "Blackpool FC would like to thank George for his work with the first-team and Centre of Excellence and everybody at the club wishes him all the very best for the future.
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