After undergoing a medical at Palace, the Eagles have pulled out of the deal.
Gosling's agent David Hodgson told the Evening Chronicle: "The move has broken down unfortunately.
"We arrived at Palace and did all the things we had to do, and unfortunately it came around to 2.30pm yesterday (Tuesday) and we hadn't had any communication from Palace.
"Having sat there until 9pm last night, we took it upon ourselves to say it wasn't right and this wasn't working.
"A call from anybody at the football club would have been helpful. We didn't get that call.
"Ian Holloway has been absolutely fantastic and Dan wanted the chance to link up with Ian more than anything else."