The British tabloid claims that Palace manager Alan Pardew is keen on the 19-year-old moving to a Championship club for this season in order to continue his development.
Kaikai featured on loan for League Two outfit Cambridge United for most of the 2014-15 campaign.
Earlier this month, HITC Sport reported that Championship clubs Nottingham Forest, Fulham and Bolton Wanderers are all after the highly-rated teenager.
Good move from Crystal Palace?
Kaikai has already made his debut for the Palace first team, but he is unlikely to get much playing time at Selhurst Park this season.
Last season at Cambridge, the teenage winger showed what he is capable of when given regular time, scoring six goals in 28 appearances and winning the club's Young Player of the Year award.
It makes sense for Palace to send the 19-year-old out on loan to a Championship club, as the standard of football in the second tier of English football is much higher than that in League Two.