Palace have decided on Iain Dowie's replacement and will announce the appointment early next week, says director of football Bob Dowie.
Chairman Simon Jordan is thought to have ended up with a shortlist of two – Mike Newell and Peter Taylor – and has eventually opted for Taylor.
"Simon has intimated that he knows who he wants, and now it's just a matter of trying to get him," said Dowie.
"We wanted someone with a track record, so we looked at people with experience of winning things and developing young players at a club of similar size to Palace.
"We interviewed two managers who have competed in the Champions League, but Simon wanted someone with experience of the Championship."
Hull City boss Taylor has confirmed that he has been in talks this week with Jordan and says his own chairman, Adam Pearson, is keen to have the matter wrapped up quickly.
Taylor told the Hull Daily Mail: "Adam is pushing Simon Jordan for a very quick decision.
"I can understand that but I haven't got a clue when that decision will be. Either way, everyone concerned wants a quick decision."