Israel international Khalaili's switch to Selhurst Park comes after a proposed move to Inter Milan collapsed earlier this summer when the Italian club discovered an irregularity during his medical.
The 21-year-old, capable of playing as a right wing-back or winger, is set for a medical of his own before Crystal Palace's move is finalised, with the fee reported to be in the region of £21m-£24m depending on the outlet, on a five-year contract with the option of a further year.
Palace beat Newcastle United and other suitors including Bournemouth and Nottingham Forest to his signature, having reportedly offered around €28m-€30m to Union Saint-Gilloise, which would represent a club-record sale for the Belgian champions. Khalaili scored six goals and provided six assists in 52 appearances last season, and previously helped Union win their first Belgian title in 90 years before featuring in the Champions League.
Palace's other significant pursuit is Torino forward Alieu Njie, with the club having returned with an improved offer worth around €19m in total after an initial bid of roughly €10m plus bonuses was rejected by the Italian club.
Torino have so far shown no willingness to sell the 21-year-old Sweden Under-21 international, having also turned down earlier interest from Anderlecht, Monaco, Genoa and AZ Alkmaar, and are believed to value him at closer to €18m for an outright sale, with a loan-plus-buy-option structure also having been proposed and rejected.
Njie, who joined Torino from Forssa BK in 2021, made 15 Serie A appearances last season, scoring once, having previously featured 16 times in 2024-25 with a single goal. He has a contract with the Turin club running until 2029, and Palace's new manager Pierre Sage - who took over from Oliver Glasner this summer - is understood to see the forward as a long-term investment for a squad being reshaped around a back-three system.