The Daily Mail claim the 22-year-old is being tracked by Celtic and Newcastle, as well as Premier League sides Southampton and Crystal Palace, after Brendan Rodgers described the defender as "excellent" earlier in the season.
Former Wigan Athletic defender Hendry has shone north of the border since joining Neil McCann's side, proving instrumental in the Dark Blues' fight against relegation from the Scottish Premiership.
Douglas, who also played for Dundee, claims Hendry has got "everything in his locker" and is not surprised that bigger clubs are eyeing a move for the young defender before stating that he will command a bid of more than half a million pounds.
“I can understand why big clubs are being linked with Jack Hendry," Douglas said. “Any time I’ve seen him play I’ve been very impressed.
“He’s big, aggressive, confident, quick and can play. He passes well from the back and he also brings the ball out and commits midfielders. He’s got everything in his locker.
“If there is a big bid in January then Dundee wouldn’t be able to knock it back. It would be great business for a guy they picked up for nothing a few months ago.
“By that, I mean upwards of £500,000. That’s small change to Celtic and the English clubs he’s been linked with. If it was an offer of £200,000 to £300,000, I’d be tempted to wait until the summer.”
Making 21 appearances in all competitions, the tenacious defender has attracted attention after starring at the back in a side that have had to defend before they can attack.
The former Partick Thistle ace has even scored two goals since his move north of the border from League One side Wigan in the summer, and has 18 months remaining on his current contract at Dens Park.