The 24-year-old has been in fine form for the Eagles since returning to Selhurst Park in 2014 following a disappointing spell at Manchester United. His form saw him attract interest from Tottenham Hotspur last summer.
Palace chairman Steve Parish confirmed his side rejected the White Hart Lane club's interest in their winger in August 2016. Mauricio Pochettino is still interested in signing Zaha for Tottenham after the end of the season, according to the Sun.
The report claims their north London rivals have joined the race to sign him after indentifying the Ivory Coast international as a transfer target. Arsenal will fight with Tottenham to sign the former United flop, as both the clubs are looking at strengthening their attack.
Arsene Wenger's contract at the Emirates runs down after the end of the season. It is believed that the Frenchman will continue at Arsenal as he is already planning for the upcoming transfer window.
Alexis Sanchez has over one year left on his contract and his future at the club remains uncertain. Even if the Chilean international decides to sign an extension, Wenger believes his side still needs to strengthen their attack.
Arsenal are ready to fight with Tottenham for the Palace star, who is valued at £30m ($38.4m). The Gunners are willing to pay straight cash or include two of their players, Alex Oxlade-Chamberlain and Carl Jenkinson, as a part of the deal.
Palace manager Sam Allardyce is looking at the option of signing the two Arsenal players after admitting his side will not be able to stop Zaha from leaving Selhurst Park in the summer. Arsenal would be willing to include the two as part of the deal that will then help them beat competition from Tottenham in signing Zaha.
The Gunners' efforts to sign the Palace winger will also depend on whether they qualify for the Champions League. They are sixth in the table with 63 points after 34 games, trailing fourth place Manchester City by six points. Arsenal, however, have an advantage of a game in hand.
Should Arsenal fail to make it to Europe's elite club competition next season, Tottenham are likely to take advantage of the situation in convincing Zaha to snub advances from Arsenal.
Zaha starred in Palace's 3-0 victory over Arsenal in April, where he assisted two of his side's three goals. He also played a crucial role in the Eagles' 2-1 victory over Chelsea where he scored the winner at Stamford Bridge.