The 2001 British & Irish Lions coach, who steered New Zealand to World Cup glory on home soil last year, is set to team up with John Kirwan in a new look back-room staff at the Super Rugby franchise.
Henry stepped down from his role with the All Blacks after their triumph over France in the World Cup final, although he is currently acting as a consultant to the Pumas as they head into their first Rugby Championship this month.
He was also on the appointment panel that opted to give former Italy and Japan coach Kirwan the top job ahead of Pat Lam and Kieran Crowley. Kirwan returns from holiday to take up his appointment next week, when the full coaching staff will be revealed.
Getting Henry back on board at the Blues would be a major step forward as the province attempts to rebuild after finishing last of all the New Zealand franchises in the Super Rugby rankings.
Henry was head coach in 1996 and 1997 when the Blues took the Super Rugby title and was technical advisor to Peter Sloane, after returning to Auckland from his stint coaching Wales, when they won in 2003.