Penney spent five years in charge at Doncaster between 2001 and 2006
Mansfield Town will delay announcing their new manager until after Friday's game against Crawley Town.
Dave Penney was the favourite to take over and was tipped to be confirmed this week, while caretaker manager Duncan Russell is also in the frame.
But chairman John Radford was forced to devote time to resolving a dispute with landlord Keith Haslam which saw them locked out of their Field Mill home.
And Radford felt it was "prudent" to postpone the appointment.
BBC Radio Nottingham understands that Penney headed a shortlist of four that also included Russell - who has won two and drawn one of his three games in charge - and ex-Port Vale and York chief Martin Foyle.
Radford, who knows Penney from their time together at Doncaster Rovers, said last week: "I know who it is in my head now but I am not going to announce it yet.
"We've shortlisted them and we pretty much think we've got to the bottom of it. There's one little factor which we still need to sort out so that's why I'm leaving it until next Tuesday."
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