Former England manager Allardyce is one of the names on a shortlist Palace have drawn up to potentially replace the under pressure Frank De Boer, whose job is one the line after just three games in charge at Selhurst Park this season.
Allardyce guided Palace to 14th place in the Premier League last season after taking over the struggling club in December, but resigned unexpectedly in May claiming he was retiring.
Other names being considered by the Palace board are another former England manager Roy Hodgson, and Fulham chief Slavisa Jokanovic, who was a candidate for the job before De Boer was appointed.
The Dutchman had lengthy talks with Palace chairman Steve Parish yesterday, but no immediate decision on his future was taken, though new signings were discussed.
The former Ajax and Inter Milan coach, who has lost his opening three Premier League games amid rumblings of discontent from with the dressing room, could still be axed before the close of this international window – with new Sporting Director Dougie Freedman ready to step in as a short term measure.
In any case, the first fixture after the break, at Burnley, looks like a win or bust game for de Boer – with a frightening fixture list following that match, which sees visits to both Manchester City and United, and a home game against Chelsea.
Palace are though in talks to sign Liverpool defender Mamadou Sakho, who had a spell on loan at Selhurst Park last season, in a £25 million deal.