The 39-year-old Spencer is on the lookout for a new job after parting ways with South Africa's Eastern Province Kings, the apparently financially troubled franchise which returns to the expanded Super Rugby competition next season.
His shock departure from the Kings, revealed today, has cast a further spotlight on issues facing the expanded Super Rugby competition.
Spencer's Auckland lawyer David Jones told the Herald that Spencer registered his interest with the Blues in May, as the Kings continued to have troubles meeting their wage obligations to Spencer and players. Redman said his interest was formally registered and the matter was not closed just yet.
The brilliant former All Black first five-eighths was so keen on a return home and disappointed in the way the Blues were performing that he approached the Auckland-based franchise about an assistant's role when John Kirwan was still in charge. Spencer thought he could help restore the Blues by taking up a role as a backs/attack/skills coach.
Meanwhile Jones strongly rejected reports claiming Spencer had paid the price for poor results with the Kings. Spencer terminated the contract last Wednesday because of longstanding problems with his wages being paid and engaged a South African law firm to sort the matter out.
"It's been happening since before Christmas last year - there comes a time when you've had enough," said Jones.
"At some point you have to lance the boil. He is owed a substantial amount of money and has had to constantly chase them for arrears. The player payments have been in arrears also.
"Cheeky Watson (EP rugby president) made a promise last Wednesday the players would be paid and they weren't. There has been a series of broken promises.
"Carlos didn't want to terminate until he had a replacement job, but he reached the end of his tether.
"I know he would love to come back to New Zealand. It is his favoured option. And he really wants to help restore the Blues credibility."
Jones said Spencer had initiated reverting to a more "hands on" role as skills coach with the Kings two months ago and felt "defamed" by negative inferences that they had pushed him out of the head coaching job.
In his application to the Blues, Spencer wrote: "I believe my long history with the Blues along with my coaching experience gives me the right pedigree. I know what it takes to pull a group of individuals together and get the most out of them."
Spencer played for the Johannesburg Lions and held coaching roles with them and the Sharks before joining Eastern Province - an area noted for the involvement of black and coloured players - in 2013. He coached their fledgling Currie Cup side and was appointed head coach of the Kings in February, then shifted to an attack/skills role under Brent Janse van Rensburg.