Palace are yet to make any signings this month but Patrick Vieira wants to strengthen his squad in the final week of the transfer window.
Midfield is a priority position and a deal for Conor Gallagher from Chelsea looks unlikely.
Ahamada is a 20-year-old a box-to-box midfielder who has impressed for Stuttgart in the Bundesliga this season.
Palace also want to sign a right-back and were one of a number of clubs to speak to Villarreal winger Arnaut Danjuma, who looks set to join Everton.
The Eagles are 12th in the Premier League after draws against Manchester United and Newcastle, and Vieira has called for new signings to boost his squad.
“We have identified the names of those players that we wanted,” said the Palace manager. “Now everything is in the hands of the football club to try and make it happen.”