The 21-year-old joined Dijon from Lens last summer and has been in impressive form during the 2019-20 campaign, scoring eight times in 28 appearances in all competitions.
According to Le Foot, Palace are 'following' the former France Under-21 international ahead of a potential move during this summer's transfer window.
The report claims that Bournemouth, Watford, Eibar and Marseille are also keeping a close eye on the developments surrounding the attacker, who has largely played off the left this season.
Dijon, who are only three points outside of the Ligue 1 relegation zone, allegedly value Chouiar in the region of €10m (£9m).
Three straight wins before the postponement of the Premier League season left Palace in 11th position in the table, just four points off sixth-placed Wolverhampton Wanderers.