Hodgson knows he has to strengthen his squad at Selhurst Park and apparently is ready to take a gamble on bringing the 21-year-old to the club in the new year.
Mariners boss Russell Slade wants to keep hold of his prize asset, and underlined how highly he rates him during a press conference last month, shortly after Dembele had won an EFL young player of the month award.
He said: "Siriki is making great progress with us. It (winning the award) shows you that Grimsby is a platform for good, talented young players that have perhaps missed the boat a little bit earlier in their careers.“In my opinion, he can certainly go higher. Why? Because he’s got the right attitude.
"He will work at things and he always wants to improve."
The Eagles are not the only team interested in the player, with Swansea boss Paul Clement also very keen on the tricky winger and local media reports in Grimsby claim they are preparing themselves for some major offers in the new year.
It's the second time in a week both Palace and Swansea have been linked with the same player, having also shown an interest in Dundee defender Jack Hendry.