Patrick Vieira is keen for the Eagles to bolster his squad before the transfer window closes and the club have turned to Germany for an addition.
The Premier League side are closing in on Ahamada, who is on the books at Stuttgart and a regular part of the club’s side.
According to German outlet Fussball Transfers, an agreement is in place between Crystal Palace and Stuttgart for the 20-year-old.
Ahamada has been in the starting eleven for all of Stuttgart’s 16 Bundesliga games so far, in a sign of his importance.
The Frenchman was capture by Stuttgart for a fee of just €1.5m, following a successful loan spell from Juventus.
They are set to make a big profit by selling him to Crystal Palace, but the level of fee the Eagles will pay is unclear.
Stuttgart currently find themselves third from bottom in the Bundesliga table and may use the cash brought in to make their own additions this month.
