The 43-year-old Tottenham technical coordinator has played down links to the vacant role at Ewood Park following Steve Kean's departure, saying he is happy at White Hart Lane.
The 43-year-old former Blackburn player has a proud history with Rovers, having captained them to the 1995 Premier League title, and he would surely command a high level of respect from the supporters after their concerted campaign to force previous boss Kean out of his role following the club's relegation to the League Championship.
Sherwood, though, has stated that he is happy at Spurs and looking forward to the future in London.
"I've got a great job where I am. There ain't nothing to consider. It's just speculation," he told reporters. "That's all they are - just rumors. That's all I know about it. I love what I do. I'm happy at the football club - it's a great project."
Sherwood has been a part of the back-room staff at Spurs since 2008, and he is heavily involved with the youth team. In addition to that, the current instability at Rovers would represent a potentially unstable introduction to club management.
Tottenham manager Andre Villas-Boas did not seem fully opposed to Sherwood potentially taking on the job if were he to make himself available for the position.
"I can't comment on the Blackburn situation, because I have Steve Kean as a friend and I respect him," the 34-year-old Portuguese said. "But if Tim is a candidate, he has to make a personal decision and speak to the club."