The Breakers were not able to be reached for comment on Penney's possible re-signing but a press conference has been scheduled for tomorrow morning.
One report suggests Penney had secured a three-year deal with his hometown club which would likely draw the curtain on long and fruitful career that began in 2003.
A star at schoolboy level with Westlake Boys High, Penney's professional career took off after four years playing at the University of Wisconsin.
He reached the highs of the NBA with stints at the Miami Heat (2003) and Los Angeles Clippers (2004-2005) and spent much of his career playing throughout Europe.
A strong last season with the Hawks showed he still has what it takes at the top level and he now looks poised to return to make one final contribution at the Breakers.
The Breakers announced on Saturday that centre Alex Pledger had re-signed on a three-year contract, while other seasoned campaigners Mika Vukona, Tom Abercrombie and Corey Webster are also on-board for next season.
The addition of Penney would leave the Breakers with five confirmed starters for 2016-17 with six more players still to be confirmed.