Espargaro raced with Honda in 2021 and 2022 having spent four seasons with KTM prior, before returning to the Austrian marque this year with the GasGas-branded Tech3 outfit.
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The eight-time podium finisher has lost his race seat at Tech3 for 2024 in favour of Moto2 champion-elect Pedro Acosta, with Espargaro signing on as a KTM test rider.
On Friday at the Malaysian Grand Prix, Honda team boss Alberto Puig told DAZN that Espargaro was a real option to replace Marc Marquez in 2024, along with Luca Marini and Fabio Di Giannantonio.
Honda is keen to offer only a one-year deal to keep its options open for 2025, which ruled out previous favourite Miguel Oliveira.
Espargaro confirmed as much, but insists he will remain a KTM test rider – which will also involve wildcard outings – in 2024.
“I already have a good relationship with Alberto from the past,” Espargaro said when asked by Autosport if he was considering returning to Honda.
“I think he’s a good guy and he’s doing his job well. Honda is in a very difficult situation because of Marc.
