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According to SunSport, incoming investor Sir Jim Ratcliffe has met with Potter and favours him as the new boss at Old Trafford if he fires Ten Hag.
The threat to Ten Hags position increased following Tuesdays 1-0 Champions League home loss to Bayern Munich.
United crashed out of Europe with their lowest-ever group-stage points tally of four, finishing bottom in Group A.
It was back-to-back home defeats for the Red Devils who lost 3-0 to Bournemouth.
And a heavy loss on Sunday at bitter rivals Liverpool where United got humiliated 7-0 in March could be the final straw for the former Ajax boss.
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Jose Mourinho was sacked by the Red Devils following a 3-1 loss to Jurgen Klopps side in December 2018.
Potter, 48, has not managed since being sacked by Chelsea in April after less than a season in charge.
But Ratcliffe remains a huge fan of the former Swansea and Brighton boss and wanted him at French side Nice.
The English billionaire is set to buy 25 per cent of United next week and will immediately take over football operations.
Potter turned down the chance to succeed Alex Neil as manager of Championship side Stoke this week.
It is understood he is only prepared to return to the dugout if a major job came up.
Ten Hag is Uniteds fifth permanent manager since Sir Alex Ferguson retired following his 2012-13 Prem title triumph.
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