Coyle has been in charge at Burnley since November 2007
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Bolton are expected to make an approach to Burnley on Monday for permission to speak to manager Owen Coyle, BBC Radio Lancashire understands.
Talks have taken place between the clubs about Bolton's managerial vacancy but no official approach has been made.
Coyle has not ruled out a return to the Trotters, with whom he spent two and a half years as a player in the 1990s.
Gary Megson was sacked by Bolton on 30 December after a two-year stint, with the club 18th in the Premier League.
Megson, 50, was an unpopular appointment with Bolton supporters and endured a difficult reign at the Reebok Stadium.
Fans regularly hit out at what they perceived to be negative tactics.
Having played for the Trotters between 1993 and 1995, former striker Coyle would be a more popular appointment by chairman Phil Gartside.
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Gothic_Wanderer
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If Coyle decides to leave Turf Moor for the Reebok, Bolton will be required to pay Burnley compensation in the region of £3m - as dictated by a clause in the 12-month contract extension signed by the 43-year-old in the summer.
Gartside had Coyle on his shortlist for the Bolton manager's job before he appointed Megson in October 2007 and subsequently recommended him to Lancashire rivals Burnley, where the Scot took over the following month.
During his time at the Clarets, Coyle has revolutionised the club, masterminding their promotion to the top flight for the first time in 33 years.
Despite making a good start to the season, which included a victory over Manchester United, Coyle has voiced frustration at the lack of resources at his disposal in comparison to local rivals such as Bolton.
And recent results have left the club in 14th place, two points above the relegation zone.
On Saturday, Burnley assistant manager Sandy Stewart insisted that Coyle was happy at the club, despite the speculation linking him with the Trotters.
"I can't make much comment but what I do know is he is very happy at Burnley," stated Stewart. "It's simply speculation and we had it in the summer with Celtic."
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