Wenger is desperate to win the race for the gifted midfielder in the summer – whether he helps the Eagles to reach the Premier League or not.
Williams has pushed his way into the Palace side this season and also made a major impression for Wales in the World Cup qualifiers.
The Gunners boss is determined to get the 19-year-old after losing out to Manchester United in the race for his team-mate Wilfried Zaha. United are also keen on Williams.
But Palace will be desperate to hang on to him if they go up. There is no love lost between Wenger and Palace boss Ian Holloway over the Zaha transfer saga and the Arsenal chief will not worry about stepping on the Palace boss’s toes to get what he wants.
Williams came off the bench to win his first Wales cap in last week’s 2-1 victory away to Scotland.