However they are yet to reach an agreement with Liverpool.
With both teams in action the announcement of any transfer is likely to have to wait until after full time.
But the Telegraph report that Palace and Sakho have agreed a loan deal until the end of the season.
Mamadou Sakho has agreed terms with Crystal Palace
Liverpool transfers: Deadline day rumours rated
Mon, January 30, 2017
Football Whispers have rated Liverpool's chances in the transfer market ahead of deadline day (1 – unlikely, 5 – likely)
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Football Whispers have rated Liverpool's chances in the transfer market
Sakho travelled to London this afternoon to tie up a deal after being exiled at Anfield.
Sakho has not featured at all this season after being sent home from a pre season tour for bad behaviour.
Palace have also sealed the signing of Luka Milivojevic from Olympiakos.
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