According to a report in the Sunday Independent Kheraj said he will “unravel” his many charitable interests in an attempt to land the top job.
Kheraj, who is currently vice-chairman at Barclays, is said to be relishing the challenge of repairing the scandal-hit bank’s reputation.
Barclays was slapped with a £290m ($450m) fine from UK and US regulators.
The scandal has cost Diamond his job, while chairman Marcus Agius has also handed in his notice.
Kheraj, who has also worked for Lazard International, left Cazenove in 2010 shortly after the the group’s £1bn merger with JP Morgan was finalised.
Rich Ricci, the sole boss of Barclay’s investment bank, is the bookmakers favourite to become the next chief executive of Barclays, while Standard Chartered finance director Richard Meddings has also been widely tipped for the role.
