The 68-year-old was controversially axed from the panel in favour of Alesha Dixon back in 2009, but has been tipped to regain her place following the 'Boy Does Nothing' singer's defection to Britain's Got Talent.
Sources claim that the Phillips met with BBC controller of entertainment Mark Linsey recently to discuss whether getting her back for the next series would be too "tricky" for either party.
"The idea of her returning to Strictly was discussed," The Sun quotes insiders as saying. "There is no offer on the table but Mark wanted to know where Arlene's head was on the whole thing.
"Neither were ruling anything in or out as it's a tricky one for both of them. Her departure was not without bad feeling and controversy, so you can understand her being cautious.
"Likewise, the BBC axed her for a reason so it could be that that chapter should remain closed."
Phillips previously thanked fans for supporting her potential return to Strictly, but allegedly admitted soon after that she is struggling to cope with the intense speculation.
Former Strictly pro Karen Hardy is favourite to take Dixon's seat, though the likes of Miranda Hart, Kara Tointon, Nancy Dell'Olio and Russell Grant have also been touted for the role.