Jean-Philippe Mateta's move to AC Milan has fallen through, according to Sky in Italy.
Milan have decided not to proceed with the transfer, however, it remains to be seen if Juventus will now make a move for the player in the final hours of the window.
Juve were interested in Mateta earlier in the window but failed to make progress with Palace over a deal for the 28-year-old.
The striker, who was left out of the Palace squad for Sunday's trip to Nottingham Forest, had wanted the move to Milan, but it was being held up while Palace tried to sign a replacement.
Meanwhile, the Eagles were also set to pay a guaranteed £43m plus £5m in add-ons for Wolves' Jorgen Strand Larsen as Mateta's replacement.
Strand Larsen has completed his Palace medical ahead of his £48m move and the club are finalising the paperwork for the transfer.
The south London club are set to break their transfer record twice in this window following the purchase of Brennan Johnson from Tottenham Hotspur.
More to follow shortly...