The report claims that the Brighton man is attracting heavy interest this summer with Everton among those keen on his signature, yet it is Palace who have made an opening bid.
Among the areas in need of bulking up is at centre-back with current Palace ace Damien Delaney well into his thirties while Scott Dann is in need of a long-term partner.
Dunk, 24, was one of the standout defenders in the Championship last season as Brighton finished third and ultimately lost out in the playoffs to Sheffield Wednesday.
The tall centre-back is solid in the tackle, positionally excellent and a real threat from set-pieces - finding important goals throughout the campaign which helped Brighton’s automatic promotion push.
The report goes on to say that the Seagulls will demand at least £10 million for the defender, and Brighton fans will be desperate not to see arguably their most valuable player join the club’s biggest rivals.
Palace are also accredited with an interest in Wolverhampton Wanderers ace Kortney Hause and Reading’s Jake Cooper, yet it is Dunk who top their wish-list this summer.