The 23-year-old has struggled to command a regular first-team place at St. James' Park and will now be reunited with his former Plymouth manager, according to his agent
Gosling has failed to establish himself as a regular in the first team set-up at St James' Park since joining from Everton in 2010.
However, Palace manager Ian Holloway, who worked with Gosling at Plymouth earlier in his career, is ready to offer the 23-year-old an escape route with Gosling's representative revealing the midfielder has agreed terms with the Selhurst Park club.
"He has had his talks with Crystal Palace and everything is agreed,” David Hodgson told The Shields Gazette. "We are not privy to how far [the clubs] are apart.
"The most important thing is for Dan to play football again.
"When your old manager comes in for you, and it is for a Premier League team, what better place to go?
"Ian Holloway gave him his debut at 16 and helped him play for England’s youth teams."
Hodgson said that working with Holloway again was a major factor in the player's decision.
"Dan is going to join somebody who knows him inside out," he added.
"Playing football is very, very important but finding the right glove to fit into is even more important.
"A permanent deal is the intention and all parties would be happy with that."