This paper delves into the dynamics of the pipe-in-pipe system, crucial in offshore oil and gas exploration, featuring an inner drill string nestled within an outer riser. A reduced-order model with five degrees of freedom is proposed to capture the coupled dynamics of this system. Here, the inner drill string is depicted as a torsional-lateral coupled rotor constrained by the outer riser. In contrast, the outer riser is modeled as a suspended stator subjected to vortex-induced excitations and contact forces. The model incorporates nonlinearities, including dry frictions, collisions, loss of contact, and nonlinear damping through the van der Pol wake oscillator. This comprehensive model allows an in-depth exploration of the dynamics of the coupled pipe-in-pipe system. Parametric analysis is conducted based on the non-dimensional numerical model, revealing a novel and stable whirling phenomenon termed "follower whirling" at low rotary speeds of the drill string. During this stable follower whirling, the riser's vortex-induced vibration traces an "8"-shaped trajectory, while the drill string follows suit, oscillating between forward- and backward-whirling, forming a "C"-shaped trajectory relative to the riser. Additionally, within the frequency lock-in region of the vortex-induced vibration, frequency analysis indicates induced nonlinear resonances through the continuous contact whirling of the drill string, showcasing a strong coupling between the drill string and the riser. In contrast, within the non-lock-in region, the system dynamics are primarily dominated by the backward whirling of the drill string. Furthermore, the parametric study reveals that the backward whirling of the drill string can significantly reduce both the cross-flow and the in-line vortex-induced vibration of the riser. However, as a side-effect, it introduces higher-frequency vibrations and potential fatigue damage to the inner drill string. This research lays a foundation for comprehending the coupled dynamics of pipe-in-pipe systems in offshore drilling applications.