Chabangu has been without a side since leaving Chippa United over a year ago, and is reportedly living in Tembisa with his family having fallen on hard times.
In a recent Sowetan newspaper article, Chabangu spoke of how he spent his money on women and cars and did not care to save for the future. Chabangu, who played for Bafana Bafana in 2014, begged for another opportunity to play professional football, but he looks set to play in the amateur ranks.
Mikhado chairman Itani Musandiwa is in advanced talks with Chabangu with a view to enlisting the playmaker's services.
"The negotiations are going on and if things go well by next week we will conclude the deal," says Musandiwa.
"Every person does mistakes in life and we cannot judge anyone by his past. A lot has been said about Lerato but there are a lot of postives we can always draw from his football career," he adds of the gifted 32-year-old, whose career has been hampered by off-field issues.
Mikhado are based in Limpopo.