A deal is already in place for Louis van Gaal to take over as Tottenham manager, according to former Holland international striker Ruud Gullit. Gullit says he is certain that a meeting has taken place between the current Netherlands coach and Spurs chairman Daniel Levy.
He told BBC 5 Live:
"I know for sure he was at Van Gaal's house, the [Spurs] chairman. I think it's a done deal, but you never know."
The news will come as a blow for current manager Sherwood, who signed an 18-month deal in December.
Van Gaal, who has previously been in charge of European giants Ajax, Barcelona and Bayern Munich, recently opened the door to English suitors.
"I've always said that I want to work in the Premier League, so there's a chance.
One proviso was that he was not willing to combine any job with his role as Holland coach. However, the 62-year-old will be a free agent in the summer when his second spell in charge of his country ends after the World Cup in Brazil.
Sherwood has won 10 and lost eight of his 21 games in charge since taking over from Andre Villas-Boas, initially as caretaker boss.
He accepts that because it is his first managerial role a short-term contract makes sense, and he understands that speculation will continue about his future.
"I would like [the contract] to be 10 years but I am realistic enough to know this is a dress rehearsal. I am untried,`` Sherwood said earlier this week."
However, despite the uncertainty surrounding his future the former Tottenham midfielder has already started planning for next season.
"I've given him (Levy) a list of players of who I want for next year. You need to start looking, this is the time. The chairman's got a list of the players who I would like. There be a list of players and if you get one you don't need to get the other. There are four or five are on there."
It seems only time will tell whether Sherwood is at White Hart Lane to see his plans come to fruition.