He is unsure about his position in the team under manager Arne Slot and has been looking at other options in Europe.
Palace has made a move to sign Elliott and has opened discussions with Liverpool about a potential transfer.
Liverpool is willing to sell Elliott, but only for a price of £40m or more. The transfer could help Liverpool buy a new striker, Alexander Isak, from Newcastle.
Another possibility is a swap deal involving Marc Guehi, Palace's team captain, as Liverpool is also interested in signing him.