Boss Ian Holloway wants ex-West Ham striker Cole to spearhead the Premier League new boys' attack.
But Cole's potential free transfer move to Selhurst Park is in danger due to his wage demands.
Cole was on around £40,000 a week at West Ham and is reluctant to drop.
But Palace aren't keen on paying Cole too much more than their current earners, who are paid in the region of £18,000 a week.
They are optimistic a deal can still be done if Cole can be persuaded to accept a compromise deal of lower wages that is topped up by bonuses.