The Serbian was on loan for the second half of last season with Cardiff City as he helped them gain promotion to the Premier League. Cardiff have spoken to the Reds about taking the Serbian back on loan for the season as well.
Liverpool too are open to the idea of sending Grujic back to Cardiff but it is interesting to see what Palace might have to offer for the 22-year-old.
We have done business with the Eagles earlier by selling Christian Benteke and Mamadou Sakho and if they can throw in some money for the loan deal, it would be great for us as well.
Roy Hodgson did a decent job with the Eagles last season as he helped them avoid relegation and he would be looking to build on that and help Palace move up the table.
Grujic, for his part, has to play regularly and that would be tough in the current Liverpool team which is littered with talented midfielders.
It was his great form for Cardiff that got Grujic a place in the Serbia team for the World Cup and another loan move could help him get better and stake a claim for a spot at Liverpool.
Moving to Cardiff has its positives since Grujic would know the club well but Palace could be an enticing opportunity, thanks to the ex-LFC connections.