Leicester manager Brendon Rodgers had also acknowledged the situation but had stated that players remain protected in the bio-secure bubble despite rising COVID-19 cases in the city.
Premier League chief executive Richards Masters said on Tuesday that Leicester City's match can been postponed or moved to a neutral venue if situation in the city doesn't get better soon.
Leicester are currently scheduled to host Palace at the King Power Stadium on Saturday but rising coronavirus cases in the city has put the clash in jeopardy.
Lockdown has been extended in the city considering the mini-outbreak and Masters stated they have the ability to move the game to a different location and also at a different time if that is what the situation demands.
"We've had a long discussion with authorities about neutral venues," Masters told the Digital, Culture, Media and Sport committee as per Daily Mail.
"If what happens in Leicester does impact the club's ability to host games, either Crystal Palace or later, we have the ability to host those games elsewhere or postpone them until it is safe to do so.
"On next season, we have broken the boundary of playing football matches behind closed doors when the whole country is effected by COVID. That has been the hardest part. Next season needs to happen as well."
British PM Boris Johnson, on Monday, had admitted that they are concerned about the situation in Leicester and taking 'calibrated steps' is the need of the hour.
Meanwhile, Leicester manager Brendon Rodgers had also acknowledged the situation but had stated that players remain protected in the bio-secure bubble despite rising COVID-19 cases in the city.
