The England midfielder is expected to quit West Ham after their relegation from the Barclays Premier League.
Tottenham and Aston Villa were leading the chase to land him in a ?7million permanent deal.
Loan ranger: West Ham are prepared to loan Scott Parker to Chelsea and bring him back if they get promoted to the Premier League next season
However, his former club Chelsea have now entered the race and are keen to land him on a season-long loan.
That would appear to suit both parties. Chelsea, who are searching for midfield reinforcements after Michael Essien was ruled out until Christmas, can fill their void without splashing the cash, while the Hammers could then take back theirstar man if they achieve promotion at the first attempt.
Back to the Bridge: Parker cost Chelsea ?10m from Charlton in 2004 but was sold a year later to Newcastle
Although West Ham would prefer a straight sale, they may be tempted with proposal that involves a seven-figure loan fee and covering Parker's estimated ?70,000-a-week wages.
He would be a surprise arrival as Andre Villas-Boas' first signing. Parker originally joined Chelsea in 2004 but struggled to nail down a regular place with Claude Makelele acting as their midfield maestro.
National duty: Parker harbours ambitions of playing for England at next summer's Euro 2012 championships
Parker's unhappy spell at Stamford Bridge may put him off returning to west London, although the temporary deal would appeal to him.
West Ham co-owner David Sullivan said: 'We've had no approaches from clubs officially, and I've not spoken to Scott myself.
Number one: Parker could become Andre Villas-boas' first signing at Stamford Bridge with the new Chelsea manager looking for a replacement for injured Michael Essien
'He'd like to play in the Premier League but he accepts that if we can't get the right fee, he'll be playing in the Championship next season.
'A loan deal would appeal to us because we're not desperate to sell him. He's at the absolute peak of his game at the moment. He'll be an absolute superstar wherever he goes.'
Parker, who cost Chelsea ?10m in 2004, scored just one goal in 28 appearances for the Blues before being shipped to Newcastle a year later.
In demand: Tottenham and Aston Villa have both registered an interest in the Hammers Player of the Year following West Ham's relegation in May
Villa-Boas is short on midfield options with Essien ruled out after undergoing knee surgery. The Ghanaian ruptured his anterior ligament and cartilage in his right knee during training earlier this month.
Villas-Boas said: 'Everyone at Chelsea wishes Michael well for his recovery. His team-mates and all thestaff and I look forward to helping him return to playing as soon as possible.'
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Source: Daily Mail
Source: Daily Mail