The Blues' all-time leading goal scorer is set to be announced as the successor to Maurizio Sarri, who has already returned to Italy to coach Juventus after just one season in London.
Derby are reportedly yet to receive an official approach from Chelsea, but they should do in the coming days after Sarri's departure.
Lampard enjoyed a lot of success with the Rams in his debut season as manager, guiding them to the play-off final, where they ironically lost to Terry's Aston Villa side.
The former Chelsea captain has been brilliant as Dean Smith's assistant at Villa, having a very positive influence on the likes of Axel Tuanzebe and Tyrone Mings.
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Terry does have well-documented aspirations of becoming a manager and Derby represent the perfect platform to kickstart his career.
The Rams possess a big profile in the Championship and are able to bring in a number of top talents on loan from Premier League clubs.
Under Lampard, Harry Wilson, Mason Mount and Fikayo Tomori all thrived after arriving from Liverpool and Chelsea respectively.
Derby are also looking at John Eustace as a potential successor to Lampard.
He is currently a member of QPR's coaching staff and he finished his playing career with the Rams back in 2015.
Charlton's Lee Bowyer was also being considered after reportedly failing to agree a new deal with the Addicks.
However, the club reported today that the manager has signed a contract extension in south London.News Now - Sport News