The Colombia international is set to reunite with former Palace manager Oliver Glasner, who has been keen to bring the 30-year-old to the City Ground.
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Palace had already prepared for Munoz’s potential departure by signing Anan Khalaili from Union Saint-Gilloise earlier this summer.
Munoz joined Palace from Gent for £8.5m in January 2024 and has played a key role in the club’s recent success.
He helped the Eagles win both the Conference League and FA Cup during his time at Selhurst Park.
The defender still has two years remaining on his Palace contract, with the club holding an option to extend it for another season.