The striker enjoyed a decent season under Tony Pulis in the 2013-2014 campaign, scoring 10 goals, but has struggled to replicate that form during Alan Pardew’s reign.
The Express & Star report that Palace value Gayle at around £10million, a figure which is sure to price Wolves out of any potential approach.
If no fee can be agreed for the forward, there is the possibility of a loan move, giving Wolves the slightest glimmer of hope.
Palace reportedly favour a straight-up sale however and are in negotiations with Bournemouth over a fee.
Gayle has two years remaining on his contract but has grown frustrated at his lack of playing time and is willing to depart The Eagles if the club decides to take that approach.
Bournemouth’s remarkable ascent to the Premier League is clearly alluring to the former non-league frontman and after proving his worth in the top flight, a drop down a division doesn’t seem a likely outcome.
Palace’s reported interest in Callum Wilson also plays into the hands of Bournemouth. The Cherries are believed to have rejected a Palace advance for Wilson but still retain the possibility of using him as a make-weight in a deal for Gayle should the Bournemouth man start to push for a move.