Mr Venables was given use of the luxury property in Oxted, Surrey, as part of the lucrative deal with Palace that supporters blame for contributing to the club's plight. Mr Venables joined the club last June on what was called the world's most valuable club management contract when details of it emerged earlier this year.
Mr Venables was also paid a pounds 750,000 tax-free salary, with a pounds 500,000 interest-free loan and a luxury Mercedes. He was also paid a pounds 20,000 relocation fee, and a one-off fee of pounds 135,000 for negotiations with the club chairman, Mark Goldberg.
It is understood that while he did not own the house - not his main home - he was to have retained the equity value in it.
Simon Paterson, of Moore Stephens, Palace's administrators, said: "Venables had occupation of a substantial house in the Oxted area. When the administrators were appointed at the end of March, we took steps to secure the same by changing the locks.
"It is presently on the market and if anyone wishes to buy it I would love to hear from them." Moore Stephens were called in when debts at the club topped pounds 20m.
Mr Venables is flying to Spain today where he is developing a holiday complex.