Craig Bellamy is in talks with Oxford to become their new manager, Press Association Sport understands.
Bellamy currently works for Cardiff as their player development manager, a position he has held since December 2016.
The 38-year-old was interviewed for the Wales job last month but lost out to his former team-mate Ryan Giggs.
Bellamy is highly rated as a coach at Cardiff, his hometown club where he ended a distinguished playing career in 2014.
But it is understood that Cardiff would not stand in Bellamy's way if he decides to take on his first senior managerial role.
Bellamy made over 550 appearances in his club career, playing for Liverpool, Manchester City and Newcastle among others, and won 78 caps for Wales.
Oxford are currently 15th in Sky Bet League One and five points above the relegation zone.
They have been without a manager since sacking Spaniard Pep Clotet, Garry Monk's former assistant at Swansea and Leeds, last month.
Former England midfielder Frank Lampard was linked with the post following Clotet's dismissal.
But Lampard told talkSPORT in January: 'I spoke to Dave Jones, who works at Sky and is on the board at Oxford, in the summer about the job and that is as far as it went. "Certainly I'm working on my badges now and it's my intention (to get into management) if the right thing comes along.
"I don't know what the route will be - there are plenty of different routes to become a top manager and I am working there (at Chelsea with the Under-18s) now to get towards that."