At a time when Wolves have failed to bring in any fresh faces ahead of 2022-23, the prospect of Gibbs-White featuring in Bruno Lage's first-team squad has been perceived to be one of the few positive developments at Molineux.
However, with just two years remaining on his contract, the academy graduate will not necessarily remain at Wolves if the club receive a big-money offer.
While there remains the possibility of the England Under-21 international holding down a regular spot in the starting lineup, owners Fosun International are also insisting on recouping funds through player sales rather than spending heavily without the additional help.
With talk of the sale of Ruben Neves having gone quiet, Gibbs-White and fellow playmaker Adama Traore are regarded as the other assets who may be sold for the right price.
A number of Premier League clubs have been heavily linked with a move for the 22-year-old, who was one of the best players in the Championship during the most recent campaign.
Nevertheless, according to 90min, Palace are the frontrunners to sign Gibbs-White, Patrick Vieira having already proven in his first year at Selhurst Park that he is prepared to hand chances to prospects who have impressed in the EFL.
The report claims that Palace feel that Gibbs-White can help feel the void left by Chelsea midfielder Conor Gallagher, who has returned to his parent club.
Palace are also said to feel that Gibbs-White can challenge for a place in the England squad with regular game time at the London outfit.
The report further notes that a fee of £20m may be enough to tempt Wolves into a sale, although much may depend on the structure of the deal.
Despite the claims that the Eagles are ahead of several other clubs, Nottingham Forest and Everton are also monitoring the situation.
Steve Cooper, the head coach of Forest, has previously worked with Gibbs-White with England Under-17s, the pair both being part of the group which won the World Cup.
Having sold Richarlison to Tottenham Hotspur, Everton are in the market for at least one new playmaker, leading to interest being shown in Gibbs-White.
Gibbs-White has only played 1,188 minutes of Premier League football during his career, contributing only one goal and one assist.