Roberto Donadoni, the former Italy boss, is the frontrunner to take charge of Israel.
Donadoni, 46, who led Italy to the quarter-finals of Euro 96, has reportedly been offered a two-year contract worth €2 million with a €500,000 bonus if Israel reach the 2012 finals.
His most recent job was as manager of Napoli last season. As a player, he helped AC Milan win the Serie A five times and three Champions Leagues. He also played in two World Cups and was a losing finalist in 1994.
Ronald Koeman is another contender. Koeman, 46, won the Dutch title with PSV Eindhoven in 2007 and has since managed Valencia and AZ Alkmaar.