England Under-21 coach Peter Taylor pulled out of the running last night after being interviewed, and Lee has emerged as a surprise candidate to succeed Alan Curbishley.
Meanwhile, Sam Allardyce could be set to go back in for Abdoulaye Meite after the player confirmed he is leaving Marseille.
Allardyce last tried to sign Meite during the January transfer window but was put off making a bid when the player opted to jet off to the African Nations Cup.
"I started my Ligue 1 career with l'OM at Bordeaux and I have now ended it at Bordeaux with l'OM. That is a sign," Meite revealed.
"It is true my preference is to go to England, but there is also Italy and Germany."