Purtill will return to his home city of Manchester to take up the position at the 275-bedroom hotel on 11 April, having spent the past two years in Turkey as the general manager of the Four Seasons Hotel Istanbul at Sultanahmet.
He has spent 13 years with Four Seasons, joining as hotel manager at the group's Hampshire hotel in 2003, before being promoted to his first general manager position in Canary Wharf. Earlier in his career, Purtill worked at Ashdown Park, East Sussex; Turnberry Resort, Ayrshire; and Chewton Glen, Hampshire.
Purtill said he was excited to be joining the Palace hotel at such a critical time in its history.
"When I was growing up, I loved this distinctive building and now have the pleasure of taking the reins at the start of a brand new chapter for both the building and the talented team of people, who deliver some of the best service I've experienced during my years in the profession," he said.
"For myself and the team, this is an incredibly exciting time to be a part of the hotel's transformation and one which we can, together, make a real stamp on. I can't wait to get started."
David Taylor, who as chief operating officer is overseeing the refurbishment of around 10 hotels which together will form a yet-to-be-named urban lifestyle brand - currently operating under the codename Project 1898 - said he was delighted to welcome someone of Purtill's calibre to the team.
"He's a passionate champion of his team, which is what our business is all about, " he said. "We are in great hands with Michael leading the way, and can't wait to see the impact he has on our people and the local area."
Purtill's appointment is the first senior announcement as part of the Palace hotel's 121 recruitment campaign, which is focusing on creating 121 new jobs, predominately from the local area.
The Palace hotel is located within a Victorian building dating back to 1895, and extended in 1912, to originally house the headquarters of the Refuge Assurance Company.