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Jack Payne could quit Gillingham and join Crystal Palace on loan - if the two clubs can agree a deal.
Manager Martin Allen confirmed rumours which surfaced on Tuesday in his Thursday afternoon press conference.
However the Gills boss stressed: "Nothing has been done."
Any move by Payne, pictured, is likely to see David Wright, who enjoyed a successful spell at Priestfield earlier this season, return to Gillingham on loan for the remainder of the campaign.
"There has been talk between the football clubs and at the moment it is in the chairman's hands and we will see what happens," added Allen.
"Jack has been playing in our team and he has been doing well.
"The clubs have been talking and now we will see what happens."
Payne has played a total of 113 games for the Gills since making his debut in October 2008.