Blades boss Neil Warnock is keen to land a goalkeeper on loan despite already having three keepers in the form of Paddy Kenny, Ian Bennett and Paul Gerrard on their books.
Kiraly has returned to Selhurst Park after a six match loan spell with Aston Villa during an emergency loan, he also spent a short stay at West Ham United.
The Hungarian international has revealed that he has shunned interests from Sheffield United has he doesn't want to move so far North despite the opportunity of Premiership football.
"Sheffield is too far from here, my family lives in London and what's more, I'm not forced to have a go at any opportunities," Kiraly told Hungarian paper Nemzeti Sport.
"Crystal Palace manager Peter Taylor called me about a fortnight ago to let me know about the Sheffield possibility, but he added that he counted on me.
"I am working for Crystal Palace again, should I be between the posts, on the bench or even, if our manager decides, out of the squad."