The deal will see Cooking Vinyl handle the distribution, project management, marketing and promotional services of the album and Palmer will retail control of the project and 100% of all rights.
Theatre Is Evil will be released globally through Palmer's own label 8ft Records with Cooking Vinyl being the singer's "boots on the ground" in European territories.
The new album will, of course, be crowd-funded using more than $1 million raised from the artist's barnstorming Kickstarter campaign.
"My team looked at tons of options and the folks at Cooking Vinyl seemed like the best allies," said Palmer.
"I'm trying really, really hard to find the perfect, organic partnerships now that I'm free from Roadrunner - assembling people who really understand the importance of taking the big picture, the future, the fans' experience and the art itself into account, instead of 'moving units' with blinders on."
Founder and MD of Cooking Vinyl Group Martin Goldschmidt said, "I am proud to welcome Amanda to Cooking Vinyl, as well as being a fantastic artist she is very forward thinking in approach to the business. Our relationship is not a traditional record deal and reflects her ethics."