The Belgian attacker was a star when he first arrived from Liverpool, but he has struggled in recent years.
He has six league goals in three seasons, and the London club want rid of him.
And the Daily Mail says Palace are happy to take £8 million for Benteke.
The Hornets want £40 million for their attacker, and Palace know they must sell before they can afford anywhere close to such a fee.
Both Liverpool and Palace want Sarr, but he may prefer the Palace move as he would have regular game time.
The Reds are also unlikely to go as high as Watford want for the player.
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