Aston Villa will pay what is necessary to bring Remi Garde and his backroom team to the club, according to caretaker manager Kevin MacDonald.
Lyon president Jean-Michel Aulas has said he would block the move of two of his backroom staff to Villa Park.
Arsenal boss Arsene Wenger said Villa's chief executive Tom Fox had been in touch with him about Garde.
Fox used to work at Arsenal and Wenger, who made Garde his first signing in 1996, said Villa have held talks with the ex-Lyon boss.
Fox texted me," the Gunners boss said. "I think they met Remi Garde with the chairman and they made their opinion.
"It's a big challenge for him but it's a big opportunity. You do not get 20 opportunities to come to England and at the moment, in Europe, you find 250 managers who want to come to England."
And MacDonald added: "If they're desperate to get them then they'll pay the money."
MacDonald has been told he is in charge of the squad for Monday's trip to Tottenham.
Sherwood, 46, took Villa to the FA Cup final last season, but was dismissed after a run of six straight defeats left them bottom of the Premier League.
Garde, 49, has been without a job since last year's departure from Ligue 1 side Lyon, with whom he won the French Cup in 2012.