The 19-year-old was promoted to the Flamengo first team last year and has quickly found his feet at senior level with nine goals from 54 matches in all tournaments.
Primarily an attacking midfielder, Franca can also play on both wings or through the middle as a striker, and his versatility is believed to have caught the eye of Chelsea.
However, Globo reports that Palace have also submitted a proposal to Flamengo for the 2004-born playmaker, whose contract does not expire for another four-and-a-half years.
The report claims that both sides have shown a willingness to meet Flamengo's €25m (£21.5m) asking price, and the Brazilian giants are set to respond in the coming days.
Franca could potentially arrive at Selhurst Park as a replacement for Wilfried Zaha, who became a free agent at the end of June but is yet to make a final decision on his future.
Over in Italy, AC Milan have apparently shown an interest in signing Villarreal attacker Arnaut Danjuma.
The 26-year-old has returned to La Ceramica following an underwhelming loan spell with Tottenham Hotspur, where he scored just two goals in 12 appearances across all tournaments.
Danjuma memorably snubbed a move to Everton at the last minute in January to join Spurs, but the Toffees are still said to be interested in bringing him to Goodison Park.
However, journalist Fabrizio Romano claims that AC Milan could provide stiff competition to Everton, and the Rossoneri have initiated talks with Danjuma's agents.
Feyenoord are also believed to have thrown their hat into the ring, and Romano adds that Danjuma has already spoken with Arne Slot and Sean Dyche as he ponders his next career move.
The Dutchman still has three years left to run on his contract with Villarreal, who memorably reached the semi-finals of the 2021-22 Champions League with Danjuma scoring six goals along the way.
Meanwhile, Leeds United are said to have made contact with Bayern Munich to discuss a possible move for German goalkeeper Alexander Nubel.
The Whites are anticipating bids for current number one Illan Meslier, in spite of the Frenchman's decline in form towards the end of Leeds' doomed 2022-23 campaign.
With Joel Robles also departing upon the expiration of his contract, Daniel Farke is expected to be on the lookout for a new shot-stopper as he bids to propel the Whites back into the Premier League.
According to the Daily Mail, Leeds have begun negotiations over a deal for Nubel, who is only third-choice in the Bayern pecking order behind Manuel Neuer and Yann Sommer.
The 26-year-old has spent the past two years on loan at Monaco - keeping 24 clean sheets in 97 matches - and he could apparently be available for around €8m (£6.9m).
Stuttgart are also in the race to sign Nubel, but Leeds are understood to be the favourites at this moment in time, as the Bundesliga side are only prepared to take the German on loan.
Finally, West Ham United have supposedly failed with a bid for Strasbourg striker Habib Diallo.
The 28-year-old has blossomed into a proven goalscorer in Ligue 1 with Les Coureurs and netted 20 times in 37 top-flight appearances during the 2022-23 season.
Diallo's goalscoring exploits are understood to have attracted the attention of West Ham, who supposedly approached Strasbourg with an offer of €17m (£14.6m) for the Senegal international.
However, French outlet L'Equipe claims that Strasbourg - who were recently taken over by Chelsea's owners BlueCo - have turned down the Hammers' opening proposal.
Diallo only has two years left to run on his deal with Strasbourg and could be allowed to leave for the right price, but Les Coureurs will hold out for a higher fee before sanctioning a sale.
The former Metz and Brest attacker has registered 41 goals and six assists in 103 matches for Strasbourg since joining in 2020, while he has also netted four times in 18 outings for Senegal.