Former Wolves boss Mick McCarthy is among a group of former Midlands managers being connected with the vacant post.
As a player, 51-year-old Jackett helped Watford to a second place top flight finish and FA Cup Final, and won 31 Welsh caps.
With Dean Saunders sacked as manager of Wolves, here are five favourites to take up the role with the club now in League One.
Walsall FC have responded to allegations of racism from a section of the crowd during their match against Wolverhampton Wanderers, saying those found guilty of racist abuse will be banned from the Banks's Stadium for life.
The club say they are working closely with Wolverhampton Wanderers and the police to investigate the alleged racist abuse, aimed at two Wolves players during the match.
Walsall Football Club can confirm that we have been in dialogue with our counterparts from Wolverhampton Wanderers regarding allegations that two of their players were subjected to racist abuse during the course of Saturday’s Sky Bet League One fixture.
We are taking this matter very seriously and will fully co-operate with West Midlands Police and Wolverhampton Wanderers throughout this investigation.
– Walsall FC club statement
Both Wolves and Walsall are fiercely committed to stamping out all types of discrimination within football and will vigorously investigate any and all allegations of racist abuse.
Should anyone be found guilty of the above allegations, they will be issued with a lifetime ban from Banks’s Stadium.
As the matter is being investigated, the club can make no further comment at this stage.
Wolverhampton Wanderers have made an official complaint to the FA and to Walsall FC over alleged racism during the match between the two sides at the Banks's Stadium on Saturday.
In a statement, the club say racist abuse was aimed at defender George Elokobi in the first half while he warmed up as a substitute, and abuse aimed at goalkeeper Carl Ikeme came from behind the goal in the second half.
The statement continued:
The complaint relates to a small number of individuals in the crowd at Saturday’s game and will not sour the good relationship that exists between the two clubs.
Both Wolves and Walsall are fiercely committed to stamping out all types of discrimination within football and will vigorously investigate all allegations of racist abuse.
Wolves will always strongly support its players who are the victims of discrimination, and Carl Ikeme and George Elokobi both displayed admirable restraint in the face of receiving the abuse on Saturday.
Kenny Jackett also commented on the situation:
Both Carl and George received racist abuse at the game on Saturday and we have made an official complaint both to Walsall and the Football Association.
We were disappointed by what was said to our players but we have a lot of respect for Walsall Football Club and we know this will be down to individuals.
There is no place for racism either in football or in society and as a Head Coach and as a club we will back our players if they are on the end of it. We have made our statement and gone about things in the right way and will now leave the authorities to deal with the situation.
GAME OFF - Tomorrow's match against Stevenage has been postponed owing to a waterlogged pitch
Saturday's League One encounter between Wolverhampton Wanderers and Stevenage has been cancelled due to a waterlogged pitch at Broadhall Way.
Wolverhampton Wanderers have let a third player leave the club today, with Bjorn Sigurdarson moving to Norwegian side Molde on loan until the end of the year.
Bjorn Sigurdarson has joined Norwegian League side Molde on a year-long loan which will finish at the end of 2014.
The striker is the second to leave the club today, with Kevin Doyle going on loan to Queen's Park Rangers. Wolves look likely to see a third forward leave later also, as Leigh Griffiths is poised to join Scottish champions, Celtic.
Welsh international goalkeeper, Wayne Hennessey, also left Molineux today. He has been signed by Crystal Palace for a fee believed to be around £3million.
Sigurdarson has scored seven goals in 60 appearances for the club since signing from Lillestrom just over 18 months ago. But he hasn't featured for Wolves since mid-December.
Wolverhampton Wanderers goalkeeper, Wayne Hennessey, has signed a three-and-a-half-year deal with Crystal Palace, after signing a permanent deal.
The Welsh stopper has moved to the Premier League outfit for an undisclosed fee after a decade of service at Molineux.
Despite losing the 27-year-old, who turned out 166 times for the club, Chief Executive Jez Moxey said:
"Wayne has been with the club for a long time since coming through the academy and produced some excellent performances... If we received an acceptable offer from a Premier League club, then we were not going to stand in his way... Everyone at Wolves would like to thank Wayne for his efforts."
Wolverhampton Wanderers have agreed a deal to sign striker Leon Clarke from Coventry City.
The 28-year-old striker has now entered talks and a medical with Wolves and is expected to complete a permanent move.
Wolverhampton City Council have paid tribute to former Wolves and England goalkeeper player Bert Williams who died yesterday age 93.
He played more than 420 times for the club. The site where he used to play football when he was a child is now the Bert Williams Leisure Centre.
The manager of the leisure centre Alison Compton said:
Bert Williams was a true sporting legend. He did an enormous amount to raise the profile of Bilston and Wolverhampton both on and off the football field and we were honoured that he allowed us to name the Bert Williams Leisure Centre after him
A book of condolence has been set up at the leisure centre for people to leave their tributes which will be passed on to Bert’s family.
Wolverhampton Wanderers have confirmed that the club's former goalkeeper, Bert Williams MBE, passed away this morning at the age of 93.
During his career he made 420 appearances for Wolves, which saw Williams win the 1949 FA Cup and 1953/54 League Championship.
His 24 England caps included appearances at the 1950 World Cup Finals in Brazil, and he was the oldest living England international prior to his death.
The club said in a statement that last year Williams reached a milestone of raising £150,000 for the Alzheimer’s Society after his wife Evelyn died from the illness back in 2002.
Wolves Chairman Steve Morgan said: “Bert was not only a fantastic footballer both for club and country, but also a true gentleman who loved Wolves."
“As a young football fan who used to read about the achievements of that all-conquering Wolves team of the 1950s, it was an honour and a privilege to have been able to meet Bert on so many occasions since I arrived at the club in 2007."
“He remained heavily involved with Wolves and the community after his retirement, and the fundraising he has carried out since losing his wife was incredible when you consider his advancing years."
“Legend is a word which may be over-used these days, but in the case of Bert Williams it simply doesn’t do him justice."
RIP Bert Williams what a sad loss, a privilege to have met him.
Legendary Wolverhampton Wanderers keeper, Bert Williams, has passed away at the age of 93.
The former England international represented won the league with Wolves in the 1953-54 season.
The club inducted Williams into their Hall of Fame in 2010.