The 20-year-old Welshman has been in good form of late for the Tractor Boys, setting up the second goal in Saturday's win over Brighton & Hove Albion before netting his first goal for the club with a 30-yard strike against Derby County last night.
His initial one-month loan deal expires after Saturday's game against Nottingham Forest.
"If everything is right for me, Ipswich and Crystal Palace then I don't see why the loan can't be extended," the midfielder told the club website.
"I will be having a chat with both managers to see what the prospects are of me extending the loan. We will see what happens when that comes around but I'd like to stay at Ipswich if everyone is happy for me to do so."
Two quick victories have seen Ipswich close to within two points of the playoff places with eight games left of the season.