Chandler reportedly met with Adelaide last weekend after struggling to break into Melbourne's line-up during his first three seasons at the club.
The 21-year-old has only played six games for the Dees, with four of those as the medical-sub.
After a consistent season in the VFL, Chandler was named as an emergency but missed out on a place in Melbourne's drought breaking premiership side.
Despite temptations to return home to South Australia, but according to The Herald Sun, it is believed Chandler will now sign a two-year extension remain with Melbourne.
Stengle is currently seeking an AFL lifeline with several Victorian clubs showing interest.