As BBC Sport revealed earlier this month, Iraola is the man Palace want to replace the outgoing Oliver Glasner, who insisted after the triumph in Germany that he has no plans to reverse his decision.
They have made the Spaniard a proposal and are awaiting his answer, within that are assurances that he will be permitted significant influence over the recruitment operation.
It is understood Palace want an answer by the end of the weekend.
The move is ambitious. Iraola has emerged as one of the brightest managers in European football; Bournemouth’s qualification for next season’s Europa League illustrative of his impressive body of work.
“We have got a taste for it now, we want to keep it going,” said owner Steve Parish following the win over Rayo Vallecano.
“We have gone up a level and we have got to try and stay there. We will have a week to celebrate and then work hard in the summer.”
Palace believe they have done all they can to convince Iraola that they can provide the platform for him to continue building his reputation.
All that is left is Iraola’s approval.
If the 43-year-old declines then Palace will move on to plan B.
Among the alternatives is understood to be Frank Lampard, who has key admirers in the Palace boardroom.
Releasing Lampard from his contract with Coventry provides an obvious stumbling block should Palace pivot to the former Chelsea midfielder.
But there is some optimism at Palace that Lampard, who is aware of the Premier League club’s interest in him, would be open to joining ahead of next season.
Kieran McKenna, Pierre Sage, Sean Dyche and Thomas Frank have also been discussed as options.
Luring Iraola to Selhurst Park would be represent a coup for Palace, but the fact he’s taken so long to decide has led to a degree of scepticism inside Selhurst Park over whether the now-departed Bournemouth head coach is prepared to accept.
Much will become clearer in the coming days.