The Newcastle United boss has been linked with the job at Selhurst Park, which is vacant following the sacking of Neil Warnock on Saturday.
Pardew spent four years as a player with Palace between 1987 and 1991.
Salako says the big attraction to the Palace job is the fact Pardew's family have not moved to Newcastle with him and still live in south London.
John Salako told talkSPORT: "He was linked the last time and I'm sure he was asked - Alan is a south London boy.
"Obviously Alan is at Newcastle, a very big club, and doing a great job. He had a rough 2014 but it has picked up.
"I can't believe that he would leave a massive job like Newcastle to come to the Palace job – at the moment.
"I think at sometime in his career he would love to come back because I know his family live in the south still and he has to travel between [them and Newcastle]."