Crystal Palace manager Neil Warnock is reported to have been quoted ÂŁ750,000 for Town striker Alan Lee. Warnock confirmed his interest in the Irishman last week and was previously understood to be ready to offer ÂŁ500,000 for the ex-Cardiff and Rotherham man.
Palace have transfer-listed midfielders Paul Ifill and Carl Fletcher as they look to raise cash to increase their attacking options.
Last week, Warnock confirmed that Lee was amongst a number of players he is considering targeting: "Alan Lee is one of many strikers we have enquired about."
Lee looks likely to leave the Blues if and when Town sign a new striker. The 29-year-old has said on innumerable occasions that he wants to stay at Portman Road and is settled in the area, however, TWTD understands that he has engaged an agent to ensure that if the Blues do secure another striker, he will be able to find another club before the transfer window closes.
Palace aren't the only side interested, Huddersfield having made an offer for the former Cardiff man when they approached the Blues regarding Gary Roberts last month. Lee was left out of the friendlies at Gillingham and Tiptree but the striker decided against the move, while Roberts joined the Terriers. Preston have also been reported to be keen.
The ex-Rotherham man isn't interested in a drop down a division and doesn't want to move away from the area. A switch to Palace or another London-based Championship club may, however, be considered, particularly if Lee was to find himself further down the Town pecking order.
Meanwhile, Burnley have confirmed that they have suspended planned future pre-match entertainment after the parachutist incident on Saturday.
The Red Devils, the Parachute Regiment's elite display team, are reported to have accepted responsibility with an individual error to blame for Brigadier Ben Cannon landing on the roof of the David Fishwick Stand. The Red Devils waived their fee and have apologised to fans for the 51-minute delay.