The 30 year old forward whose former clubs include newly crowed Premiership Champions Chelsea as well as Watford (loan), Southampton, Barnsley, Wimbledon, Nottingham Forest and now Crystal Palace.
Shipperley was announced surplus to requirements by Palace boss Ian Dowie following the clubs relegation from the Premier League and has signed for a undisclosed fee and signed on a two year deal which will end on 1 July 2007.
However Neil Warnock had hoped to have signed the tall target man before the Blades headed off to Asia on their tour of China but due to difficulties between the Eagles and Shipperley the United boss had to wait on a bit longer.
Neil Warnock said: "Whilst this might not be a big money signing I'm absolutely delighted because we have needed someone like Neil since the Chief (Wayne Allison) left.
"He's a player who can come on and change a game with his strength and experience, and we lacked that in some vital games last season.
"I like the fact that Neil wants to come here. There were six clubs in for him, he spoke to two, but he made it clear to Palace in the middle of last week that he wanted to join Sheffield United. In fact he said that if he wasn't allowed to come here then he would go nowhere and stay at Palace.
"He really wants to come to the Lane and fight for a place but he knows we have a good squad and that there will be a battle for the striking berths."
Shipperley became the fifth signing by Neil Warnock following the arrivals of Lilian Nalis, Danny Webber, Paul Ifill and Craig Short.