Crystal Palace could avoid paying Pierre Sage significant compensation if he is reappointed by his former club, Lens, with the manager’s departure from Selhurst Park yet to be confirmed.

The decision to sack Sage was made on Sunday evening after Palace slumped to a 3-1 defeat against Liverpool. It was their fourth successive loss in the Premier League and left them bottom of the table for the first time since 2017.

Despite reports on Monday that the Frenchman had been dismissed, there has been no announcement, and it is understood negotiations are continuing over compensation for his three-year contract. However, Yannick Cahuzac’s sacking by Lens on Tuesday after they were embarrassed 9-1 by Como in a record-equalling Champions League defeat last week, before losing 2-1 against Marseille in Ligue 1, has opened the possibility of a swift return across the Channel.

The Lens owner and president, Joseph Oughourlian, has remained in close contact with Sage since he left to pursue what the 47-year-old described as his dream move to the Premier League. After winning the French Cup and finishing as runners-up in Ligue 1 under Sage, Oughourlian is thought to favour reappointing him in an attempt to get their season back on track. That would mean Palace could avoid paying compensation, having already spent more than £4m to buy Sage out of his contract when he replaced Oliver Glasner in the summer.

Cahuzac was promoted from his role as assistant to replace Dino Toppmöller when the German was sacked in mid-September after just four matches. But he has been under growing pressure, with supporters unfurling a banner before the defeat by Marseille that called the players a “disgrace”.

Sage remained hopeful that he would be given more time to turn things around at Palace but there have been few signs of improvement since a 5-0 thrashing by arch-rivals Brighton last month. Some players are understood to have questioned his training methods, although several others are said to have sent him messages of support since the Liverpool defeat.

Thomas Frank is the leading contender to take over, with the former Tottenham and Brentford manager having indicated that he is looking for a new challenge. He held talks with Palace in the summer before they turned to Sage. Sean Dyche and Vítor Pereira are potential alternatives, while Eddie Howe is believed to have rejected an initial approach in recent weeks.