Sarr has been at Palace since joining from Marseille in the summer of 2024, and has been strongly linked with a number of clubs in recent weeks, including Galatasaray.
Fabrizio Romano reported on Wednesday that Liverpool had submitted a £50m offer for the Senegal international, only for Crystal Palace to reject it — though other reporting has since disputed whether a formal bid was ever lodged, with some outlets describing the contact as exploratory talks rather than an official offer.
Sacha Tavolieri has since reported that Al-Ittihad are showing concrete interest in Sarr as a replacement for Moussa Diaby, who looks set to leave the Saudi club to return to Bayer Leverkusen.
According to the reports, Crystal Palace and Al-Ittihad have already held discussions over a possible deal for the 28-year-old, even as Palace continue to insist he is not for sale. Sarr is under contract at Selhurst Park until the summer of 2029, giving the club a strong hand regardless of the level of interest from Liverpool, Galatasaray or now Al-Ittihad.
Sarr's stance on his own future is reportedly clear: he views Liverpool as his preferred destination among the suitors currently circling, with Anfield seen as his "number one option" this summer, according to reporting on the situation.
That preference could complicate Al-Ittihad's efforts even if the Saudi club and Palace are able to find common ground on a fee, since any move would ultimately still require Sarr's own willingness to accept a transfer to Jeddah over interest from a Premier League rival.
Galatasaray, meanwhile, have already seen two separate bids for the winger turned down by Palace this window, underlining the south London club's determination to keep hold of one of their most productive attacking players unless an exceptional offer materialises before Tuesday's deadline.