"The process is continuing the way I said it would," said Hendry, who was back in Chicago on Thursday.
Hendry and Sandberg had dinner Tuesday night, and they continued discussions on Wednesday.
Sandberg is the second person to be formally interviewed for the Cubs job. Hendry also has talked to former Indians manager Eric Wedge and was expected to interview others, including Nationals coach Pat Listach and former Mariners manager Don Wakamatsu.
Sandberg may be a popular candidate for other teams also looking for a manager. The former Cubs second baseman and Hall of Famer was named Pacific Coast League Manager of the Year this season after guiding the Triple-A Iowa Cubs to an 82-62 record. However, teams must contact the Cubs first to get permission to interview Sandberg, and so far, no team has made a request.
When Lou Piniella retired after the Aug. 22 game, third base coach Mike Quade took over and led the Cubs to an 18-8 record. Quade, who has managed 17 seasons in the Minor Leagues, also is a candidate for the job in 2011.
"I'm very pleased with how he's run the club and handled himself," Hendry said of Quade. "The players are playing hard for him. It's a really positive environment going on in our locker room and it's a very solid blend of using the veterans properly and getting the kids the development we need to see toward the end of the season. It's very positive. He's doing an outstanding job."
Hendry said he can see players fighting for jobs next season and also sees a lot of confidence.
"I see nothing but positives," he said. "Let's not forget, we traded quite a few players and now we've got a couple significant guys injured and we're not playing any different and Mike hasn't skipped a beat and given everybody a fair chance to earn their stripes.
"Hopefully we can finish it off and continue to get out of the development part of it and the knowledge that [assistant GM] Randy Bush and I need going into the offseason," Hendry said.