The 65-year-old has seen his odds slashed from 50/1 to odds-on favourite in the space of just 24 hours as he is lined up as a potential replacement for Tony Pulis who left on the eve of the season.
The betting patterns match what happened when Pulis left his position, when a string of bets saw him slashed in a similar fashion to be the first manager to lose his job.
Warnock enjoyed a successful spell as Palace boss from 2007-2010 in which he turned them from relegation contenders in the Championship to promotion pusher, but he saw the side lose to Hull City in the play-off final in 2008.
Eventually, severe financial restrictions contributed to him leaving the club in 2010 when the club was in administration.
The 65-year-old Warnock, who has been out of management since leaving Leeds in April 2013, held talks about becoming manager of Nottingham Forest last March before pulling himself out of the race.
Palace have already missed out on two targets for the vacant position.
The Eagles were forced to pull the plug on appointing Malky Mackay after the FA launched an investigation into Cardiff's allegations he sent racist, sexist and homophobic text messages, while Tim Sherwood withdrew his interest after initially being deemed second-choice to Mackay.
Former West Brom boss Steve Clarke, ex-Celtic man Neil Lennon, and Ipswich boss Mick McCarthy follow Warnock in the betting but at much bigger prices.
You can make a case for and against Warnock being a decent appointment for Palace. He has been seen as a man to get you into the Premier League but not so much for keeping you there. Sheffield United went down his sole season with them in the top flight, while he was sacked at QPR midway through their campaign in the top flight after having brought them up.
However, his style of management is not dissimilar to that of Tony Pulis's and he might be a decent fit at this juncture, especially with other candidates dropping like flies. He has enough self-confidence to walk in there and stamp his authority and, hey, if Palace do go down, no better man to get them back up.
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