For the first time on Monday Burnley officially confirmed that Coyle has held discussions with Bolton.
A statement issued by Burnley read: "We can now confirm that manager Owen Coyle has held discussions with Bolton over the vacant manager's position at the Reebok Stadium.
"Burnley chairman Barry Kilby will now meet with Coyle to discuss his future at Turf Moor.
"This will take place following Coyle's return from Scotland tonight.
"Burnley will not make any further comment at this time."
Coyle is keen to return to the club where he enjoyed two and a half seasons as a player but Bolton will seemingly have to come up with more than £3million in compensation if that is to happen.
It is understood that clause was inserted into the his contract when he signed a 12-month extension to his existing three-year deal in the summer.
Bolton chairman Phil Gartside short-listed Coyle for the Bolton manager's job before he appointed Gary Megson in October 2007 and subsequently recommended him to Burnley, where the Scot took over the following month.
When Megson was sacked last week Coyle was installed as Gartside's top target and it appears the ambitious 43-year-old would welcome a move.
Having steered Burnley to promotion to the top flight for the first time in 33 years Coyle has had to work on a shoestring budget.
He recently remarked after the Boxing Day fixture with Bolton that they had three times Burnley's budget.
Arsenal v Bolton Half-time/Full-time: Draw / Arsenal 11/4