The Spaniard, whose contract expires this summer, has ended a lengthy period of uncertainty by announcing his departure following extended negotiations over a new deal.
“I feel this is the right moment for me to step away, but I will always carry fantastic memories of this club,” Iraola said.
His decision has immediately alerted a number of clubs across Europe, with Palace among those looking to take advantage as they prepare for a change on the touchline.
Oliver Glasner is also expected to leave Selhurst Park in the summer, prompting the Eagles to accelerate their search for a successor capable of building on recent progress, reports The Sun.
Iraola’s high-energy, front-foot style has earned widespread admiration during his time in the Premier League, placing him firmly on the radar of clubs seeking a progressive, modern coach.
Manchester United have previously tracked the 43-year-old and could yet enter the race, particularly with uncertainty still surrounding the long-term managerial situation at Old Trafford.
The presence of multiple suitors means Palace face strong competition, but they are understood to be keen to position themselves at the front of the queue.
A return to Spain also remains a possibility, with Athletic Bilbao—where Iraola spent 12 years as a player—monitoring his situation closely.
Meanwhile, Bournemouth are already planning for life after Iraola, with Ipswich Town manager Kieran McKenna emerging as their preferred replacement.
McKenna has impressed with his work at Portman Road, guiding Ipswich’s rise and establishing himself as one of the most highly-rated young coaches in English football.
Should Bournemouth succeed in luring him away, it would represent another significant shift in a summer that is shaping up to be defined by managerial movement across the Premier League.
With Iraola now officially on the market, the race for one of Europe’s most sought-after coaches is underway—and Palace are determined not to be left behind.