Potter was relieved of his duties at Stamford Bridge in April after just six months at the helm, which saw the Blues' drop to mid-table in the Premier League.
The 48-year-old was linked with an immediate return to management but preferred to take a sabbatical from football before deciding on his next move.
Ligue 1 side Nice have emerged as the frontrunners to land Potter this summer but the delay in appointing Manchester United's new owners is preventing a deal being done.
Nice owners INEOS, who are headed by Sir Jim Ratcliffe, are preoccupied with the bid to buy the Red Devils, according to GFFN.
However, Nice still view Potter as the perfect candidate to take over at the club who have been without a permanent manager since January.
Other managers in the frame for the Cote d'Azur club are believed to be Brighton's Roberto De Zerbi and Lens coach Franck Haise who has guided the unfancied French side to the Champions League.
Prising either manager away from their respective roles will be a tough ask even for Nice's ambitious project.
Potter is expected to return to management next season and with a host of suitors likely to be available, the former Brighton boss is unlikely to wait around for Nice to accelerate their move for him.
Nice have reportedly already held talks with Potter who is happy to work with the backroom staff created by sporting director Florent Ghisolfi.