Nigel Davies was named as one of the WRU's key men in January
Llanelli Scarlets chief executive Stuart Gallacher says Nigel Davies is one of six men in the running for the vacant coaching job at the region.
An announcement is expected next week, with a Welshman based in Wales one of the other five in contention.
Gallacher told the BBC that ex-Wales coach Gareth Jenkins could return to the region, but not in a capacity that has any influence over coaching.
He also expressed his regret at the way the sacking of Phil Davies occurred.
The region had planned to announce Davies' departure as director of rugby at the end of the season.
But Gallacher says his hand was forced by a leak to the media and Davies was dismissed on 30 April.
"What led to the events of last week was some confidential information leaked to one of the newspapers in Wales," Gallacher told BBC Sport Wales.
Scarlets chief executive Stuart Gallacher speaks to BBC Wales' Huw Llewellyn Davies
"Once that broke we were on the back foot and then had to react to that information.
"I'm very, very disappointed, more for Phil's sake than anyone else's and no one should deserve that sort of treatment - reading about your future in a newspaper.
"I felt badly about it but I'm not making any excuses for the club or myself, we were in an impossible position.
"With regards to him [Phil Davies] not being here, it just felt for both parties that he no longer had any input here and obviously for everyone concerned it would be better if he stayed away.
"It's true to say he did deliver a [Heineken Cup] semi-final the year before.
"However, we can't get away from the fact that this season has been a shocker on the field, really poor, not just the results but the performance."
Gallacher says that there was no rift between himself and former director of rugby Davies before a recruitment trip to the southern hemisphere last month.
"The decision to terminate Phil's contract had not been made before we left for Australia and New Zealand.
The decision to terminate Phil Davies' contract had not been made before we left for Australia and New Zealand.
Llanelli Scarlets chief executive Stuart Gallacher
"The appointments in New Zealand and Australia had been made for many, many months.
"In fairness to Phil he made most of them and I felt it was important he came with me.
"We hadn't finally made that decision [to sack Davies] and I wanted some time away with Phil and to reflect on the season, as did other people back home."
Gallacher also added that there were "major errors" made last summer in recruitment, but denied that Davies had lost the support of his senior players.
The Scarlets chief confirmed that he had made an approach to the Welsh Rugby Union to bring Nigel Davies back to Stradey Park as coach.
Davies was only appointed four months ago as the WRU's head of rugby development.
"Yes, as [WRU group chief executive] Roger Lewis said last week, I asked permission to speak to Nigel," Gallacher added.
"He's an employee of the Union and I did it the right way, but I've also spoken to another half-a-dozen coaches too and their representatives.
"No decision has been made, when it will be made we will do it properly and it will be announced, hopefully within the next seven days."
Gallacher said that the region will do away with a director of rugby, with all the responsibilities that entails, and appoint a coach whose role would be to concentrate solely on first-team affairs.
WRU chief Lewis has already said that he will not stand in Davies' way if he chooses the Scarlets.
"The Scarlets have approached us but no substantive detailed conversations have taken place," Lewis told Scrum V.
Davies was assistant Wales coach to Jenkins from 2006 to 2007.
Paul Moriarty has taken temporary control of team matters at the Scarlets, supported by Robert Jones and Wayne Proctor.
Llanelli-born Davies, 43, won 29 caps at centre between 1988 and 1997, captaining his country against France in 1996.
After a highly successful playing career at Llanelli, he retired after losing the Swalec Cup final to Swansea in 1999, joining Jenkins' back-room team at Stradey and then with Wales.
When Jenkins was sacked after last year's World Cup, Davies took over as caretaker coach for the defeat to South Africa.
With Warren Gatland taking over as Wales coach, the WRU made Davies head of rugby development in January.
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