The Eagles are running low on central midfield options this season after the departure of last season's loan success Ruben Loftus-Cheek returned to Chelsea and allowing French international Yohan Cabaye to move to the Middle East.
According to reports in the Daily Mail on Wednesday, there were other potential signings on Palace's radar including Chelsea's £30m flop Danny Drinkwater and German international Max Meyer, who is currently a free agent.
The Mail added that 22-year-old Grujic was bid on by Palace as they aimed to bring the talented Serbian in on a year's loan. But unfortunately for 70-year-old Hodgson, the midfielder is just out of his reach.
Another report by The Express stated that, Grujic was set to reject the chance to move to Selhurst Park in order to seal a second spell at Cardiff City.
The youngster, who arrived at Anfield for £5.1m from Red Star Belgrade, has made just eight Premier League appearances in two years, and moved to the Bluebirds on loan in January and impressed as Neil Warnock’s side were promoted to the top flight.
Warnock admitted to The Express that Grujic is on the verge of becoming a Cardiff player again:
“Liverpool have made it clear they’d like Marko to come with us and there is an agreement in place, it’s just about him agreeing now.” said Bluebirds boss Warnock.
For Crystal Palace it seems they have left it just too late to get the highly rated player and will have to hope that a deal can be struck with another player.