Ernesto Valverde announced last week that he would leave the Basque club at the end of the season.
That prompted many Cherries fans to express concern that Iraola would leave Dorset for his home club, where he made more than 500 appearances as a player.
Iraola is yet to sign a new contract for next season with Bournemouth, with questions over his future swirling in recent weeks and months, further deepening concerns that he would depart.
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But Sky Sport’s Florian Plettenberg has reported that Terzic is the current favourite for the job, with the 43-year-old former Borussia Dortmund boss keen on the move.
Plettenberg reports that talks are already at an advanced stage, but elections at the club could influence the final decision over the appointment.
🚨🆕 Edin #Terzic is currently the top favourite for the Athletic Bilbao job next season, and 43 y/o formend Borussia Dortmund manager himself is very open to the move.
Ernesto Valverde will leave in summer, talks with Terzic are already advanced - but elections at the club… pic.twitter.com/QVJIeZB5r1
— Florian Plettenberg (@Plettigoal) March 23, 2026
Terzic is reportedly the coaching candidate of the current president, Jon Uriarte Uranga, and there is due to be elections at the end of the season.
A president and board serve four-year terms at the club, which is a membership-based association, like fellow Spanish sides Real Madrid, Barcelona and CA Osasuna.
The roles are all voluntary, voted for by its 44,000 members, and Uriate has confirmed that he will stand again.
A new president, though, may have a different candidate in mind, so the appointment may be influenced by those elections.
Iraola has not yet committed to Bournemouth and, when asked about the Athletic Club news, he said it ‘affected him as a supporter’ and that Valverde was his “biggest reference” in football.
The boss said that any discussions over his future are not about any other club but Bournemouth.