Sol Cambell has begun to have talks with the club, who are 10th in League One, with a view to filling the vacant position.
Cambell had an illustrious playing career including spells at Arsenal, Tottenham and Newcastle, as well as earning 73 caps for the English national side.
Most recently he had been working as assistant manager for the Trinidad and Tobago national team, but hinted he that he was looking for jobs elsewhere.
"I want to manage," said Campbell on 'Soccer AM'. "I understand it's a difficult environment, even though I've got a top-notch CV, but I understand you've got to start from the bottom and work your way up."
Oxford now look to be the club willing to give him that first step on the ladder.