Palace are set to beat their city rivals West Ham United for the Manchester City forward.
The Hammers are considered front-runners for the signature of the 20-year-old but Iheanacho is believed to be nursing the ambition of remaining at the Etihad Stadium.
Manchester City are only ready to sell for the right price of 20 million pounds.
Everton and Swansea City are also linked with the former Nigeria under-17 star.
Despite limited appearances for Manchester City last season, Iheanacho scored 8 goals in all competitions.