Crystal Palace's £50m move for Wolves striker Jorgen Strand Larsen is in the balance after the Eagles communicated their intention to walk away from the deal.

The two Premier League clubs had agreed a deal in principle for 25-year-old Strand Larsen to move to Selhurst Park. That was subject to Palace tabling a written formal offer for the Norway forward, which Wolves would have accepted.

However, that offer, which was expected to arrive on Thursday, is yet to be received - and sources indicate Wolves have been informed Palace no longer want to proceed with the deal.

It remains to be seen whether the development is a negotiating tactic with a view to agreeing a lower fee.

If the Strand Larsen move falls through, it could have an impact on Jean-Philippe Mateta's anticipated exit from Selhurst Park before Monday's transfer deadline.

The 28-year-old France forward has told Palace he wants to leave this month, with the Eagles increasingly open to sanctioning his departure.

Nottingham Forest have already seen a £35m offer rejected by Palace and are set to accelerate their efforts to sign Mateta in the coming days - while Juventus and AC Milan are among other clubs to have shown a concrete interest in the striker.

Mateta is understood to want to play Champions League football, but is open to a move to the City Ground.

Palace want a replacement before sanctioning Mateta's exit - and are set to sign versatile attacker Evann Guessand on loan from Aston Villa.

However, it is unclear whether the Eagles want a new recognised centre-forward through the door before allowing Mateta to leave.

Meanwhile, Forest have bid £20m for Brighton midfielder Yasin Ayari, although the offer is expected to be rejected.