Ince attracted interest from a host of Premier League clubs and has held talks with Palace, Swansea, Stoke, Hull and Sunderland as he weighed up his future.
But Palace appear to have won the race for the sought-after youngster and are set to unveil their first signing of the January transfer window.
The England Under-21 international is due to hold further negotiations about the move and is thought to be travelling to a London hospital for a medical.
Swansea are believed to have ended their interest in Ince, leaving Palace in pole position to wrap up a deal for the 22-year-old, who is out of contract at Blackpool in the summer.
Crystal Palace first-team coach Gerry Francis said: "Very pleased obviously. We've got to dot the Is and cross the Ts a little bit at the moment, but obviously very pleased that Tom's able to come into the club.
"He's an exciting player, scores goals, which is really important and very pleased to see him on board."
Ince could be handed his debut in Sunday's Premier League clash against Arsenal at the Emirates, live on Sky Sports.