The Mirror says McClaren remains the No.1 choice of the Upton Park board to replace Gianfranco Zola in the summer.
Any job offer to the former Boro boss would depend on West Ham staying in the top-flight. And the 48-year-old, who is one win away from winning the Dutch title with FC Twente, might have to be convinced to turn his back on the Champions League to return to the Premier League.
Hammers have been dealing with the project via third parties and there seems to be some friction over who would finally do the deal to bring McClaren in - and that has also to be sorted out.
McClaren has been out of English club football since leaving Middlesbrough for the England post in 2006. He was interviewed for the Blackburn job before going to Holland.