The News of the World says Blues owner Roman Abramovich has taken advice from his Stamford Bridge lieutenants and is now preparing an official approach for Turkey boss Guus Hiddink.
The only doubt is whether Hiddink takes charge of the first team or adopts a wider role. The Dutchman is open to both - he wants to build on the success he enjoyed during his first stint at Chelsea but also relishes the chance to create a long-term philosophy at the Bridge.
If Hiddink is given the director of football role, Abramovich will need to appoint a first-team coach.
Ex-Blues striker Hughes is available, following his resignation from London rivals Fulham.
Sparky is keen to prove himself once again at a higher level after his sacking from Manchester City, and spent three years at Stamford Bridge as a player.