Oumar Niasse, who impressed in the second half of last season during a loan spell at Hull, will remain at Goodison Park after his £7m move to the Eagles collapsed at the last minute due to the agent's fee not being agreed.
Niasse traveled to south London on Thursday evening after the two clubs had come to an agreement on the transfer, but the Senegalese international will join Ross Barkley in returning to Everton as a result of a move which fell through.
According to the 'Daily Mail' a deal sheet was submitted before the 11pm deadline to allow Frank de Boer's side an additional two hours to submit the full paperwork.
However, during negotiations the Palace representatives could not agree a fee with Niasse's agent, ending any chance of the transfer going through.
Meanwhile, Palace did manage to complete a deadline day deal for the return of Liverpool defender Mamadou Sakho, for a fee of £26m.
The signing of the French defender, who spent the end of last season on-loan at Selhurst Park, was eventually officially announced at 2am, three hours after the transfer window closed.