Crystal Palace have agreed a deal in principle worth in the region of £50m to sign Wolves striker Jorgen Strand Larsen.

Sources have told BBC Sport that Palace's interest in the 25-year-old forward has intensified in the past 24 hours and a formal bid is now set to be submitted.

Palace broke their club record with a £35m move for Wales striker Brennan Johnson earlier this month but Strand Larsen's arrival would surpass that deal.

It has been known that Wolves are open to selling the Norway international this month provided they get a fee close to the £55m they rejected from Newcastle for the striker during the summer transfer window.

Leeds have already seen an offer of £40m rejected by Wolves, and as things stand the Elland Road club are reluctant to go much higher.

Palace's pursuit of Strand Larsen raises further uncertainty over Jean-Philippe Mateta's future at Selhurst Park heading into the final days of the window.

Mateta wants to leave Palace and has informed the club's hierarchy of his wishes.

Juventus and AC Milan are among the clubs to have shown a concrete interest in the France international, while Nottingham Forest submitted an offer of about £35m for Mateta at the weekend.

Mateta is understood to want to play Champions League football, but a move to Forest is understood to be a financially lucrative option for the 28-year-old.