Eddie Gray is the current caretaker, but he is becoming the victim of a witch hunt, with suggestions that he does not have the backing of the players.
A senior source today dismissed speculation that United could slip into administration within the next week, but the threat is still hanging over the club and without a creditors' agreement or serious investment they are living on borrowed time.
Many experts now believe chairman John McKenzie and deputy Allan Leighton should give up the fight and place the club in the hands of the administrators.
Such talk is threatening to ruin the club's quest to appoint a manager and a host of potential targets are now dismissing the prospect of a move to Elland Road.
The highly-rated Blackwell boasts the necessary qualifications to take over at the helm and it is understood that his name will come under discussion this week.