Reports yesterday stated Iraola is set to leave Bournemouth when his contract expires this summer.
And he later confirmed: “I feel this is the right moment for me to step away, but I will always carry fantastic memories of this club.”
Oliver Glasner is also leaving Palace at the end of the season as his deal runs down.
The Sun says Palace are now moving to hire Iraola as a direct replacement for Glasner this summer.
The Eagles are moving quickly knowing Iraola is in high demand.
The Cherries manager added: “It’s been an honour to manage Bournemouth and I am proud of what we have achieved together.
“I’m thankful to the players and staff, as well as Bill (Foley, club owner), who have all made my time here so special.
“As for the fans, you have continued to show your fantastic support to myself and the team, and for that I will always be grateful.”