Crystal Palace have overtaken Celtic as the most likely next destination for Kieran McKenna, according to Football Insider’s reporting on the Ipswich promotion specialist’s return to management.

Palace’s board has been working through a shortlist to replace Pierre Sage, whose position came under renewed pressure after Sunday’s 0-2 home defeat to Newcastle at Selhurst Park. Will Osula tucked in a Jacob Murphy cross two minutes into the second half, and Harvey Barnes added the second on 58 minutes.

The south London club has reportedly set the November international break as the point at which it will decide whether to move on from Sage, who has delivered only two Premier League wins so far this season.

McKenna’s summer exit and the £8m clause

McKenna, 40, stepped down at Portman Road in June after taking Ipswich up to the Premier League for a second time inside three seasons. He has spent the autumn as a UEFA technical observer, with visits to Bayern Munich, Major League Soccer side Colorado Rapids and rugby league club Wigan Warriors factored into what he has described as a developmental break.

Read also: Red Bull make major engine decision amid Aston Martin speculation

Any club that moves for McKenna before next summer must pay Ipswich more than £8m under the terms of his departure agreement, according to Football Insider’s sources. It is that fee, more than any sporting argument, that has reportedly cooled Celtic’s pursuit.

“I want to be in somewhere where I can improve players, play attacking football and win games,” McKenna told reporters earlier this month when asked about his next step.

“That connection with a club, a community, trying to build something memorable.”

Celtic reluctant to pay mid-season fee

Celtic manager Martin O’Neill, 74, is widely expected to step aside at the end of the season, and the Scottish champions have long tracked McKenna as a potential long-term successor. Sources told Football Insider’s Pete O’Rourke that the Parkhead hierarchy is reluctant to meet the Ipswich fee in mid-season.

Read also: Valtteri Bottas faces uncertain Cadillac future as three potential replacements emerge

“Kieran McKenna would be a big target for Celtic if they were able to lure him in, because he is somebody they’ve been after for a while,” O’Rourke reported.

Palace, by contrast, are said to be willing to pay the compensation and can offer Premier League football, which Football Insider has repeatedly flagged as the central draw for McKenna.

Read also: Jose Mourinho reveals what Barcelona fans did before Real Madrid’s dramatic victory