Sherwood is a close friend of club supremo Les Ferdinand.
He is working as a TV pundit and has turned down other chances to go back into the dugout.
Sherwood has been out of football since a season at Swindon, where he was director of football but left when they were relegated.
A major stumbling block could be his £1million-a-year pay demands, though.
Sherwood is pals with Chris Ramsey and could form part of a new management team if Ferdinand can fund it.