The 26-year-old winger has only started five times this season in the English top flight, with just one assist under his belt and a potential move at the beginning of 2022 is now being discussed.
According to Jeunes Footeux, the Eagles are interested in securing Pepe’s services on a loan deal until the end of the season.
The Ivorian, who is under contract with the Gunners until the summer of 2024, is currently on a wage of £140,000 per week.
He has struggled to cement his place as a first-team regular since his £72 million arrival from Lille.
Crystal Palace currently sit 10th in the Premier League table, five points behind Arsenal after the opening 11 fixtures.