The youngster arrived at Pride Park last season, signing a one-year-deal meaning he is free to talk to other clubs at the end of his breakthrough season with the Rams.
His ability to dribble past opponents and get supporters off their seats has caught the eye of clubs but it seems Palace are the frontrunners who want to land the teenager.
This comes after Palace made their move for striker Luke Plange, another former Arsenal academy graduate in January, paying Derby £1m for the forward.
Crystal Palace see the pair as long-term prospects and may well look to loan them out next season.
It would be a huge blow to Derby who have of course lost Luke Plange, as well as Festy Ebosele who is on his way to Udinese.
Ebiowei will be another huge blow, but one that is surprising given his performances since coming into the team, and contract situation as well.
It’s an unfortunate situation that Derby find themselves in but one that seems unavoidable until a takeover is sorted.
However, the positives to take from this are the fact that the coaching staff have brought this players on themselves and improved to the point top clubs are looking at them. In addition, it shows they can identify talented youngsters who are cast aside by big clubs which will most certainly convince more that Derby could be the place for them.