The London-based team are hoping to acquire Cristhian Mosquera for a reasonable fee.
However, Mosquera has impressed so much at Valencia that other top teams are noticing.
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Per The Standard, Atleti are very serious about securing the 19-year-old as well.
Diego Simeone's side are planning defensive signings to revamp their squad after a tough season.
Palace sporting director Dougie Freedman sees Mosquera as a possible replacement for Marc Guehi, who may want to move on to a bigger club.