While the 48-year-old had been considering a break after his mid-season departure from Chelsea, his record from before going to Stamford Bridge still puts him in high demand for a number of progressive clubs.
Palace see Potter as an ideal candidate for their next step as a club and feel they can make the Englishman a convincing offer, including the chance to work with one of the best young squads in the Premier League.
The south London club have made a virtue of bringing through exciting local talent and, having being an attractive option for so many young players, now want to move onto the next stage and nurture them in a more expansive style of play.
While that has long been a goal for the club’s owners, the competitive nature of the bottom half has ensured evolution has constantly been stunted by the need to stay in the Premier League.
Patrick Vieira had initially impressed in a spell where his pragmatic football was considered a more steady step from the approach of previous coaches like Roy Hodgson, only for the team to run into trouble and Hodgson returning.
Potter is seen as ideal for that longer-term process, given he went through exactly that at Brighton, bringing the club through a move to a new football philosophy after Chris Hughton.
There is a belief within Palace they can prove persuasive, although they are likely to face significant competition given the number of clubs that are interested in the 48-year-old.
Potter himself is intent on a club that has the right structure to work in.