Eddie Nketiah’s hamstring injury has derailed a possible move to West Ham, talkSPORT understands.
Nketiah is set for a spell on the sidelines after suffering a hamstring problem.
West Ham had been preparing a January approach for the former Arsenal forward.
Nketiah has endured a stop-start season, missing 11 games in all competitions due to recurring hamstring and thigh setbacks.
Of the 18 matches he has been available for, he has started only five and has found the net on four occasions.
The 26-year-old is in his second campaign at Selhurst Park after arriving from Arsenal for £30million in August last year.
However, he has largely been restricted to substitute appearances, with French forward Jean-Philippe Mateta preferred as the focal point of attack by Eagles boss Oliver Glasner.
Nketiah’s minutes could be reduced even further if the south London club secure a deal for Wolves striker Jorgen Strand Larsen.
talkSPORT understands Palace are keen on the Norway international, who has also been on West Ham’s radar.
However, it is believed the Hammers are hesitant to commit significant funds to Strand Larsen during the January window.
Palace have been open about their intention to strengthen their attacking options this winter and have already agreed a fee with Tottenham for winger Brennan Johnson.
If the move is finalised, with Palace hopeful it can be wrapped up in time for their meeting with Newcastle on January 4, Johnson would become the club’s most expensive signing.
For West Ham, the news of Nketiah’s injury represents a setback in their efforts to reinforce their forward line.
Hammers captain Jarrod Bowen, naturally a right winger, has led the attack in three of their last four matches.
But West Ham boss Nuno Espirito Santo chose to start Callum Wilson, a recognised striker, up front in Tuesday’s 2-2 draw with Brighton.
The Hammers have already signalled their intent to be busy in the January market, with Fulham winger Adama Traore edging closer to a switch.
It is understood Nuno has been spearheading the move for Traore, whose contract expires in the summer.
The pair previously worked together at Wolves, where Traore made 131 appearances under Nuno and contributed 28 goals and assists.
Should Traore’s transfer be completed, Nuno would need his former player to make an immediate impact as West Ham aim to avoid their first Premier League relegation since the 2010/11 season.