The early odds on Sami Hyypia's replacement at the Amex Stadium.
Sherwood's only job in management so far came at Tottenham Hotspur last season, although he was relieved of his duties after just several months.
Hughton, who also worked at Tottenham for a number of years but not as manager, has coached the likes of Birmingham City, Norwich City and Newcastle United.
Sherwood can be found at prices as low as 3/1, while ex-Newcastle boss Hughton is at 6s, according to sports betting website Oddschecker.
The Daily Mirror, meanwhile, report that Brighton will turn to ex-Tottenham boss Sherwood, although neither the 45-year-old nor Hughton are the outright favourites.
The former Stoke manager did a remarkable job to keep Palace in the Premier League last season - and similar may be required to keep the Seagulls in the Championship this term (although their ultimate aim will be far more ambitious).
In ex-Tottenham, Newcastle and Stoke bosses, then, the frontrunners for the Brighton post have all managed in the top flight in recent years.
Recently sacked Reading coach Nigel Adkins is not far behind Hughton in the running (some bookmakers even rate him as more likely), while outsiders include Karl Robinson and Sven Goran-Eriksson.