The 21-year-old spent last season on loan with Bradford City, scoring six goals to help the Bantams reach the League Two play-offs and winning the club’s Young Player of the Year award in the process.
A Scotland Under-21s international, Banks featured for the first-team during pre-season, and having committed his future to the club he will now continue his development in Germany.
St Pauli will be looking to push for promotion to the Bundesliga once again in 2023/24, having finished fifth last season in 2. Bundesliga.
Everyone at Crystal Palace would like to wish Scott the best for his spell in Germany.