The 18-year-old is still on a youth contract at the club as he is a third-year scholar and as of yet he has not been offered a new deal by the Magpies.
Alan Pardew worked with the defender during his spell as manager at Newcastle and is said to be a fan of him and if Newcastle don’t offer him a professional deal soon Palace could swoop in and offer him one themselves.
Gibson played with the first team in a friendly game last weekend as Steve McClaren wanted to take a look at him as Newcastle are currently short of options at full-back.
Paul Dummett, Massadio Haidara and Chancel Mbemba are all currently unavailable for selection so Gibson may well be needed in the upcoming Premier League fixtures.
If Gibson does feature for the first team, it seems certain that Newcastle will offer him a professional deal, but Palace will be waiting in case they decide not to.