The Frenchman has failed to fire and has been told he is not be part of the club's future plans and his move from German side Mainz will not be made permanent.
Mateta is officially with the Eagles on loan until the end of the season but he can move on sooner if he wants game time, says The Sun.
It would also give Palace space to get an extra forward in January with an extra wage off the payroll.
The 24-year-old made the move to Selhurst Park earlier this year on an initial 18-month loan deal.
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