The 16-year-old was in Palace's FA Youth Cup squad last term, while he turned out on three occasions for Slovakia Under-17s at the Under-17 European Championship earlier this summer.
Lusale has been with the Eagles since the age of 13, but according to the Manchester Evening News, Man United are closing in on a deal for the attacker.
The 20-time English champions are currently prioritising the signings of young players, with the club moving away from spending huge money on established stars.
New minority shareholder Sir Jim Ratcliffe is now in charge of the football department at Old Trafford, and Dan Ashworth has now been confirmed as the club's sporting director.
Wolves 'battling' for Whittaker deal
Elsewhere, Wolverhampton Wanderers are allegedly battling Brentford for the signature of Plymouth Argyle attacker Morgan Whittaker during this summer's transfer window.
The 23-year-old came though the youth system at Derby County before moving to Swansea City in 2021, spending two years with the club ahead of a permanent switch to Plymouth following a successful loan spell.
Whittaker has made 81 appearances for the Greens in all competitions, scoring 29 goals and registering 16 assists in the process.
According to Football Insider, Wolves are determined to secure the attacker's signature this summer, but the club are facing competition from fellow Premier League outfit Brentford.
The report claims that Plymouth have placed a £15m valuation on Whittaker amid claims that Lazio, Celta Vigo and Stuttgart are also keen on him.
Whittaker, who has a contract with his current side until June 2027, scored 19 Championship goals during an impressive 2023-24 campaign.
Luton 'closing in' on Baptiste deal
Meanwhile, Luton Town are reportedly close to reaching a final agreement with Shandon Baptiste over a move to the Championship outfit on a free transfer.
The 26-year-old's contract with Brentford officially expired at the end of last month.
Baptiste made 12 appearances for the Bees during the 2023-24 campaign, including 10 outings in the Premier League, but he was not offered a new contract by Thomas Frank's side.
According to Football Insider, Luton have won the race for Baptiste, with the midfielder set to make the move to Rob Edwards's side following their relegation from the Premier League.
The former Oxford United youngster made 55 Premier League appearances during his time at Brentford, while he has featured on 13 occasions in England's second tier during his professional career.