The England international currently views staying with the Eagles as the best option for his development, enjoying regular first-team football and a clear pathway to progress.
However, with a big proposal expected in the summer, the situation could change, particularly as Premier League giants and even Real Madrid have reportedly expressed interest in the 21-year-old.
Palace's proactive approach in negotiating a new deal highlights their desire to secure one of their brightest prospects, ensuring the No.20 remains central to their plans while fending off interest from other clubs.
Talks are ongoing, and the coming months will be crucial in determining whether the midfielder continues his development at Selhurst Park or makes a high-profile move abroad.