Newcastle announced that Pardew has now been given permission to speak to Palace, which fired Neil Warnock on Saturday.
Although Palace is in the relegation zone and Newcastle is in 10th place, Pardew has endured a fraught relationship with fans of the north-east club where he was under contract until 2020.
But Pardew would be returning to the London club where he is still fondly remembered from his 1987-1991 spell as a player at Selhurst Park.
Newcastle said in its statement late Monday that Palace "made a formal approach requesting permission to speak to Alan Pardew in relation to their vacant managerial position."
The club said assistant manager John Carver, who once managed Toronto FC, will run training Tuesday.