The 19-year-old defender is set to have a medical with the London club ahead of a move in the coming days.
Ferguson is an England under-20 international and will cost Palace up to £10 million, per Sky Sports.
He plays primarily at right-back and will fill the hole left by Aaron Wan-Bissaka, who went to Manchester United in the summer.
Ferguson is the third Palace signing in this window, coming hot on the heels of Cenk Tosun and Scott Banks.
Manager Roy Hodgson was desperate for a right-back and appears to have gotten his wish.