Daily Mail reporting that the club are set to miss out on one of their top targets.
Striker Nick Blackman has rejected the opportunity to speak to the South London club after his club Sheffield United accepted a bid of more than £1.2 million.
The Eagles have recently received a cash injection following their sale of Wilfried Zaha to Manchester United, and increased their original bid of £700,000 for the highly rated forward.
Blackman, who only moved to Bramall Lane from Blackburn Rovers in the summer, refused the opportunity to speak to Ian Holloway’s side, and played for Sheffield United in their FA Cup fourth round defeat to Reading yesterday.
He is not desperate to leave the League One team, with his form good twinned with the fact that the Blades are currently pushing for promotion.
However, the fact Sheffield United have accepted a bid may tempt others into making a move, with it thought that any advances made by a Premier League team would be difficult for Blackman to turn down.
Palace may look to other targets now they have money in the bank from the Zaha sale. They are still in the hunt for promotion, and have Zaha for the remainder of the season on loan as part of the deal that took him to Old Trafford.