Tottenham Hotspur and make him their new manager.
The Sun reports that Spurs chairman Daniel Levy has already turned down a bid from the recently relegated side to take the former England international to Ewood Park.
Sherwood remains a popular figure at Blackburn after captaining the Premier League title winning side in 1995.
The current Tottenham assistant first team coach recently signed a fresh four year deal with the Premier League side, and they will be in no rush to let him leave.
However, it is believed that Rovers are willing to offer him a £2 million a year salary in a bid to lure him away from the North London club.
They believe he is the man to revitalise the club after the resignation of much maligned former boss Steve Kean.