The Terriers are eight points adrift of safety at the foot of the table after losing their last eight games, a club record.
A respite from those top-flight travails comes today with a trip to Bristol City in the FA Cup third round.
Victory would be a welcome fillip for a club whose season has gone badly awry since starting December sitting 15th in the table.
“It is clear that we want to add quality and options to our midfield areas in this January transfer window,” said Wagner, who in common with previous windows at the helm of Huddersfield wants his business done as early as possible.
“I am sure many of our supporters know about Jason from his years playing in the Premier League.
“It is important that our additions in January have the ability to arrive and make an immediate impact in our team, which I am sure Jason can.
“He has played in this division for nearly a decade now and knows what it takes to be successful.
“As well as being a very good player, he is a great character. He has been the captain of Crystal Palace and is a real leader in the dressing room, which is something we wanted to add, too.”
Puncheon has been at Selhurst Park since 2013 having initially joined on loan from Southampton before making the switch permanent early the following year.
The 32-year-old suffered a cruciate ligament injury a little over a year ago and was ruled out for the season.
Since returning to fitness opportunities have been limited with his involvement this term restricted to three starts in the Carabao Cup and five substitute appearances in the Premier League.
“He is now totally fit after the knee injury that he suffered last season,” added Wagner, who was last night waiting to find out if Puncheon had been registered in time to be involved at Ashton Gate this tea-time.
“He has been very keen to come here and show that he is still capable of performing at the top level, which is great news for us.
“I am really excited about working with him to help him understand our way of play.”