Waddock has been out of work since leaving Wycombe last September, but it appears he is poised for a return to coaching.
MK Dons boss Karl Robinson is thought to looking to reshuffle his backroom team after missing out on promotion last season with doubts surrounding Mick Harford's position at the club.
Robinson is an admirer of Waddock and feels he could be a key addition to his staff as he plots a serious challenge for promotion next season.
The 51-year-old took his first steps into management at Queens Park Rangers and also helped Aldershot win promotion to the Football League before taking charge at Wycombe in 2009.
During his time with Wanderers he guided the club to promotion to League One and he is highly-regarded in coaching circles.