According to the Daily Mail, the 21-year-old has been a ‘long-term target’ for the Eagles, who may make a move for him and Aston Villa’s Jack Grealish should they lose star man Wilfried Zaha, valued at £80 million.
Lookman joined Everton from Palace’s South London rivals, Charlton Atheltic, for a reported £11 million fee in January 2017, but has made just 45 Toffees appearances in the two years and three months since.
He has managed only four goals and two assists for the Blues, and has regularly been used as a substitute in Marco Silva’s first year as Everton manager, making just three league starts this campaign.
After seemingly finding himself at odds with Silva’s predecessor, Sam Allardyce, Lookman spent the second half of last season at German outfit RB Leipzig, where he scored five times in 11 outings.
The Bundesliga club attempted to sign him permanently last summer, a move Lookman was said to be eager to make, but nothing materialised.
There have also been suggestions that Lookman, himself from South London, has suffered from homesickness during his time on Merseyside, so he may also be interested in a transfer taking him closer to home should Palace bid for him.