Palace boss Sam Allardyce is attempting to strengthen his defence in order to avoid relegation from the Premier League, and is looking to bring the Congolese defender in on loan.
Crystal Palace are not keen on allowing Andros Townsend to depart on a cut price fee, according to reports from the Daily Mirror.
The DR Congo global has not featured for Newcastle since November and he is now representing his country at the Africa Cup of Nations, but his availability could entice Palace into a swap deal, as Sam Allardyce is believed to be seeking defensive reinforcements.
The 22-year-old was signed from Anderlecht for £8.5m in July 2015, and featured regularly for Newcastle last term.
They say Townsend will likely move to St James' Park on loan with a view to a permanent deal at the end of the season.
This season, returning to the Premier League, Andros Townsend has found it extremely hard to make a positive impression at Selhurst Park and his season stats do not make for good reading.
The England worldwide wants to rejoin the club where he scored four times from 13 appearances during the second half of last season following his £12m arrival from Spurs in January.
Newcastle sold Townsend to Palace last summer after the London club triggered his £13m release clause. Would you like Townsend back?