The 49-year-old has been discussing the current Palace and former Newcastle boss.
Lee feels Pardew saw potential relegation form coming at Newcastle - with the Tyneside outfit having also suffered long winless runs under his management.
Indeed, the former Magpie believes Pardew may have known he had overachieved with the squad he had at his disposal earlier this season and used the warning signs to take the opportunity at Selhurst Park.
The 49-year-old told the Chronicle of the current Crystal Palace boss: “I think he saw what was coming, I really do. He knew it was going to get worse.
“It was a steady decline at Newcastle and he knew it wasn't going to get any better. Alan Pardew is not stupid. He organises teams well but he could see what was happening.
“If he’d had an inkling it was going to get better you would not choose Crystal Palace over Newcastle United, would you? That’s no disrespect to Palace. He knew Newcastle were doing better than they should be."
Pardew has done a far better job so far with the Eagles than he had done at St James' Park earlier this season, although the honeymoon period has been rocked by two straight defeats at Palace.
Crystal Palace travel to Stamford Bridge to face Chelsea in their next Premier League clash on Sunday afternoon, while Newcastle will once again look to end a run of defeats - now standing at seven in a row - at Leicester City during Saturday's early kick-off.