But the Eagles are still interested in signing the out-of-favour Belgian and could come in with another offer before the end of the summer transfer window.
Jurgen Klopp has made it clear Benteke is not in his plans at Anfield, but the club will not sanction his exit until they receive their £30m valuation in full.
Palace’s most recent bid was understood to have been £23m up front with £7m add-ons.
The London club had a £25m offer for the 25-year-old striker turned earlier in the summer.
Both Benteke and Mario Balotelli could leave Liverpool prior to the window closing next month, though Klopp last week warned their suitors their desire to offload them would not see them sold on the cheap.
“Having six strikers is a little bit too uncomfortable but it’s still possible,” Klopp said.
“If anybody thinks that because we have more than one striker, we make presents to other clubs, that’s the biggest misunderstanding in world football. We will not do that 100 per cent.”
Benteke joined the Reds from Aston Villa for £32.5m last year, but struggled to adapt at Liverpool following a change in management just two months into the season.
His strengths at a target man do not suit Jurgen Klopp’s tactics, and he was given a bit-part role by the German boss for the remainder of last term following his appointment in October.
It’s accepted that the Belgium international needs to leave Anfield to revive his career and, following the sale of Yannick Bolasie to Everton for £30m, Palace have to funds to do the deal.