Transfer expert Fabrizio Romano confirmed that Palace is looking for a replacement for Eberechi Eze, who left for Arsenal last week. Gallagher is one of the players being considered, and initial talks have taken place. However, nothing has been agreed upon yet.
Other teams, such as Tottenham and Chelsea, have also been linked with Gallagher. Tottenham is looking for a replacement for Son Heung-min, who left for Major League Soccer earlier this summer. Chelsea might see Gallagher as an upgrade on some of their young players.
Gallagher's return to England would be a possibility, given his reported openness to returning home. Palace is eager to bring him in before the transfer window closes.
It's worth noting that Gallagher's situation is complicated by Atlético's decision to sign more non-EU players. This might affect his chances of staying with the club.