Ronald Koeman is set to move from Southampton to Everton.
Koeman is expected to become Everton boss in the next few days, after the Merseyside club agreed personal terms with the Dutchman.
Everton are now trying to negotiate a compensation package with Southampton, which will allow them to bring Koeman to the club.
Koeman has been tempted to Goodison Park because of the transfer budget on offer at Everton.
The Toffees reportedly plan to allow Koeman to spend over £100 million in the summer transfer window.
One of Koeman’s first priorities is to improve Everton’s defence and Dann features highly on his wishlist.
The Palace centre-back has impressed with his performances over a number of seasons at Selhurst Park.
Palace are likely to want to keep hold of Dann, but Everton now have the financial power to force through a move.
Dann made 42 appearances for Palace last season, and he scored five goals.