Captain Milivojevic took issue with the Belgian striker's attitude during a training drill in which coaches had instructed players to pass the ball to one another with increasing power to test their first touch.
The Serbian midfielder became frustrated with just how hard Batshuayi was passing the ball and tempers boiled over leading to the two having to be separated by teammates at the club's Copers Cope training base.
Milivojevic played 89 minutes as Roy Hodgson's side claimed a well earned point at The Emirates on Thursday night with Batshuayi an unused sub.
It is understood Palace won't be handing out disciplinary punishments to either player as tempers flaring on the training ground is a somewhat regular occurrence at football clubs.
Batshuayi has struggled since his loan move from Chelsea at the start of the season. Having done so well during his first six month spell at the club, the 27-year-old is yet to score in 10 Premier League appearances and hasn't started a league game since November.