Crisis talks have been going on for three days already following last Saturday's 3-0 defeat to Hertha Berlin.
That result left the club inside the bottom two of the Bundesliga after six straight defeats and faith in coach Bert van Marwijk is wavering.
Opinion is currently divided at board level as to what is the best way forward with half of the board members reported to be keen on sticking with Van Marwijk while the other half would like former coach Magath to take charge.
Magath saved the club from relegation in his first spell in charge between 1995 and 1997, guiding them from the position they are currently in, 17th, to the last 16 of the UEFA Cup.
He went on to win back-to-back league and cup doubles with Bayern Munich before guiding Wolfsburg to a maiden Bundesliga title, although after finishing second with Schalke in 2010, his managerial career has taken a nosedive.
He left the Royal Blues in March 2011, returning to Wolfsburg for just 18 months.
Magath's affinity with Hamburg is a deep one, however. His goal in the final of the 1983 European Cup earned HSV a 1-0 victory over Juventus - their last major honour.
"I've never experienced anything like what I've seen here these last few days," said Van Marwijk at a press conference which became merely his opportunity to deliver a statement on Monday with no questions permitted.
"I get the feeling the club is destroying itself," added the Dutchman, whose last game in charge of Hamburg could be their DFB-Pokal quarter-final tie with Bayern Munich on Wednesday night.
Regardless of the outcome of that match, Van Marwijk's future seems more dependent on which lobby wins at board level with further crisis talks expected this week.